In the short-term, there needs to be coordination of measures to alleviate the immediate pressures. While the Bank is ready to do what it can to alleviate the impact of the stronger currency, we need to recognise the limits to what can be done by the Bank alone in the face of these extraordinary events.
The various forms of direct intervention on their own will not suffice, as international experience has suggested. Consideration should be given to combining intervention policies with direct special targeted support measures for those sectors of industry that are hardest hit by the exchange rate developments. These could include direct subsidies or using tax concessions to encourage continued production and/or the retention of employment.