4  BIS Review 39/20086  Our risk management approach addressed three basic aspects to deal with the crisis: preserving sufficient liquidity, foreign exchange market stabilization, and regulatory changes to soften the impact of turbulences on the financial system.
The liquidity stress caused by international financial volatility in the local market was dealt with through measures such as buying back part of the central bank notes directly, or auctioning floating-rate and then fixed-rate repos – distributed among institutions according to their market share, and extending their terms from 7 to 30 days.