In Albania and Serbia, for instance, where central banks have adopted inflation-targeting frameworks, exchange rate flexibility remains relatively limited as policymakers are mindful of adverse balance sheet effects resulting from sudden and substantial exchange rate fluctuations.
New instruments for exchanges will be introduced in a gradual manner, as hitherto. Further areas for strengthening the functioning of OTC markets will include greater standardisation of OTC derivatives and suitably extending central clearing arrangements for such contracts where feasible.