Recent studies factor segmentation of and restricted access to financial markets into the analysis of FX policy. The most relevant conclusions suggest that, in terms of maximizing social welfare, the best choice is a less flexible foreign exchange regime, where access to hedging instruments is more limited. And this is a more realistic conceptual framework for our economy.
With the advancements in information technology, centralisation of some operational processes is being embraced globally based on the resultant cost savings as along as adequate risk mitigating measures are assured. In this regard, I urge regulators in the Eastern Africa region to always embrace a developmental mindset as they consider proposals by market players.