This segment of the market needs to be developed much more, and this forms part of the on-going work at the Bank in consultation with market participants such as the Money Market Subcommittee of the Financial Markets Liaison Group.
Finally, the desire of major reserve holders to diversify their portfolios provides additional support. With financial market participants trying to ride these trends, volatility could become excessive. 8  BRICS refers to Brazil, Russia, India, China and South Africa.