“The least vulnerable countries are Czech Republic, Poland and Serbia, and Turkey and Russia outside the CEE area. All enjoying high profitability of their banking sectors, low dependence of parent banks’ funding and larger domestic banking ownership” (Standard Bank, August 2011), What caused such a dichotomy of opinions between foreign investors and domestic public?
Higher demand for such instruments from businesses will stimulate more competition and lower prices among banks. And a greater use of forward instruments among banks will also reduce exchange rate volatility in the interbank market.