Very much like in other parts of the world, conditions in the foreign exchange market continued to be volatile. The Bank has continued its involvement in the foreign exchange market mainly for reserves accumulation purposes.
The problem with foreign currency debt is that if the exchange rate falls, the debt burden rises. The results can be likened to a bank run, with rising debt burdens deterring foreign lenders, weakening the currency and pushing debt burdens even higher, deterring more lenders, and so forth.