The developments in global financial markets and the global economy since the collapse of Lehman Brothers bring me a sense of deja vu of what happened in Japan 10 years ago but on a worldwide scale. To maintain financial market stability amid financial crisis, substantial liquidity provision by a central bank is indispensable. In that regard, the Bank has taken various measures.
To the extent that management of capital account tries to influence the size and composition of capital flows impacting on meeting the current account deficit as well as movements in reserves, the adequacy of level of reserves is a relevant factor.