Implications for monetary policy  What would be the implications of the new liquidity regulation for the central bank’s operational framework and for the conduct of monetary policy? 5.1  Implications for the central bank operational framework  I will first turn to the possible interaction of the new regulation with the central bank operational framework.
With every experience there is a lesson to be learnt; the progressive liberalisation of the exchange controls came at the cost of losing key information on cross-border flows that is crucial for macroeconomic policy decisions. It was at this point that the authorities strengthened the cross-border system for monitoring and reporting.