Before the exchange rate reform was launched, there were concerns that companies could not adapt to the reform, and a floating exchange rate would thus lead to widespread shutdown and sharp decline in export and employment. There were also people who believed a 3 percent appreciation would result in mass closures and bankruptcy in textile and light industries.
1/4  BIS central bankers' speeches  Overall, I am deeply convinced that the reforms are necessary to restore confidence in the banking sector and will lead to a better prudential framework.