After all, in addition to the fundamental alternative of flexible exchange rates, there are also intermediate solutions such as basket pegs or even crawling pegs. Given global financial markets, international investors and the free movement of capital, exchange rates are nowadays - even more than before - “bridges” between the economies. These bridges may be fixed or movable.
Communication to the public on the future monetary policy direction is also vital so that the public can anticipate the central bank monetary policy and to avoid ‘surprises’ that could trigger volatility in the money market.