This should eliminate possibilities for regulatory arbitrage so that risks are not shifted from regulated sectors toward new market participants for which these rules do not apply. Hence, regulation of new market participants should follow the principle of “same risk, same rules”. Third, speeding up structural change might be perceived as being excessively disruptive at the current juncture.
Progresses in these areas reinforced the foundation for exchange rate regime reform on the micro level. Because of all these developments, it was believed that it was the right time to further reform the exchange rate regime.