Others maintain pegging arrangements to the euro – as in the case of Cyprus, the Republic of Macedonia and as many as 16 African states, most of which belonging to the CFA zone – or to currency baskets in which the euro plays a predominant role, as in the case of Hungary, Iceland, Poland and Turkey.
Even though bankers also moved significantly to risk aversion, previously committed lines of credit, in conjunction with Federal Reserve ease, were an adequate backstop to business financing. With the process of credit creation able to continue, the impact on the real economy of the capital market turmoil was blunted.