On the other hand, our policy frameworks are somewhat diverse, reflecting countryspecific circumstances, and this will condition our approach to controlling inflation. Our exchange rate regimes also reflect this diversity. Dealing with the inflation crisis has become complicated as we battle global spillovers on an ongoing basis.
The region now faces a tremendous developmental challenge within which recovering the losses due to black swan events like the pandemic look the most formidable. Our countries have also experienced sharp increases in fiscal deficits and deterioration of the balance of payments. The future appears uncertain and gloomy against the backdrop of an unprecedented slowdown in economic activity, employment and export earnings.