As indicated before, the Bank remains committed to a flexible exchange rate regime, with the exchange rate determined primarily by the market. The commitment to a flexible exchange rate should, however, not be misunderstood as an indifference towards the exchange rate.
But early signs are just that: early. It is far too soon to think about counting any chickens yet. Let’s also be clear that the capacity to fine-tune these outcomes is very limited. Most importantly, for today’s discussion, even if we do manage this episode as successfully as we might dare hope, major long-run challenges will remain.