mas speech, 2005-11-02
Consequently, unless central banks in fixed exchange rate regimes can get commercial banks to use their foreign exchange resources, and we have in Barbados, been trying to do this (Trinidad and Jamaica operate that way all the time), fixed exchange regimes will find it necessary to hold higher levels of foreign exchange than their counterparts in floating rate regimes where the exchange rate is not sacrosanct.
Sentiment: neutral
Topic: mp_exchange_rate