This leads to lower costs, lower operational risks and less operational inefficiencies. Because FMIs facilitate the clearing and settlement of monetary and financial transactions, safe and efficient FMIs are particularly important for maintaining financial stability. Their critical role comes to the fore in times of crisis when, given the interconnectedness and interlinkages of the global financial system, systemic risk is at its peak.
But in reality, we have to be aware of too many “forward-spending” agents, private and public alike. Such a situation can stoke inflation and bring cumulated losses in competitiveness, lower export performance and a high current account deficit.