But what about the exchange rate? Is it true that appreciation of the exchange rate keeps inflation under control by putting an enormous burden on the exports sector? I wish to underline that the monetary policy implemented by the NBS aimed to accomplish only the main objective which is defined by the law – „to achieve and maintain price stability“.
In fact, the ECB, as well as other central banks, international institutions and some market participants, had identified a number of risks and vulnerabilities in the financial system well before the financial market tensions erupted in August last year.