This was meant to lead to a measure that could serve as an indicator of how long a country could sustain external imbalance without resorting to foreign borrowing. However, for small developing countries this rule is highly risky and is not likely to instil confidence in fixed exchange rate regimes.
In addition, the Statement serves as a vehicle for enhancing the accountability of the Bank to its stakeholders. In my remarks this evening, I will present only the main highlights of the full text of the 2003 Monetary Policy Statement.