This agreement provides for the establishment of an escrow account in the financial institution where money is deposited before creation of e-value. Safeguarding customers’ virtual money which they purchase with cash from mobile money agents has been the BoU’s main concern. The BoU has only allowed mobile money operations when this is done in partnership with a supervised financial institution.
The explicit commitment on the duration of zero interest rate policy worked to lower longerterm interest rates. Increasing bank reserve targets strengthened the "time duration effect" which relied solely on market expectations of future developments in policy rates in the absence of any actual change in policy rates (Iwata(2005)). New policy framework 5.