situation is that the balance sheets of financial institutions have increasingly come to include instruments denominated in foreign currencies. the need for currencies outside an issuing country ’ s markets arises primarily from the global role played by key international currencies, such as the dollar and the euro. for example, over the past decade, international loans and deposits have grown tremendously, as has the issuance of international debt securities – that is, bonds, notes, and money market instruments sold outside the borders of the borrower ’ s country and sometimes denominated in foreign currencies. these developments have posed new challenges for conventional central bank liquidity and lender - of - last - resort policies. for example, injecting euros or sterling into national money markets may not be sufficient to restore market function in these economies when funding shortages are in dollars. indeed, a significant feature of the recent financial market stress is the strong demand for dollar funding not only in the united states, but also abroad. many financial institutions outside the united states, especially in europe, had substantially increased their dollar investments in recent years, including loans to nonbanks and purchases of asset - backed securities issued by u. s. residents. 1 also, the continued prominent role of the dollar in international trade, foreign direct investment, and financial transactions contributes to dollar funding needs abroad. while some financial institutions outside the united states have relied on dollars acquired through their u. s. affiliates, many others relied on interbank and other wholesale markets to obtain dollars. as such, the recent sharp deterioration in conditions in funding markets left some participants outside the united states without adequate access to short - term dollar financing. the emergence of dollar funding shortages around the globe has required a more internationally coordinated approach among central banks to the lender - of - last - resort function. the principal tool we have used is the currency swap line, which allows each collaborating central bank to draw down balances denominated in its foreign partner ’ s currency. the federal reserve has now established temporary swap lines with more than a dozen other central banks. 2 many of these central banks have drawn on these lines and, using a variety of methods and facilities, have allocated these funds to meet the needs of see patrick mcguire and goetz von peter ( 2008 ), “ international banking activity amidst the turmoil, ” bis quarterly review, june ; also see ecb ( 2008 ), “ the international role of the euro ” july. the ecb report noted

to best bis central bankers ’ speeches achieve this. the bot ’ s inflation targeting framework has served us very well since its adoption over 10 years ago. apart from serving as an anchor for macroeconomic stability, the bot can also undertake steps, or act as a catalyst for the necessary changes, that will serve to enhance thailand ’ s competitiveness and augment economic adaptability. most directly, the bot can strive to enhance the effectiveness of the financial sector in serving as intermediaries of capital. our current strategy is to broadly deliver tangible improvements in four key dimensions. first, encourage financial innovation and the expansion of available financial instruments. second, broaden the choice available to firms and households in terms of financial services. third, reduce the cost of these financial services. and finally, improve access to them. to this end, the bot has embarked on a multi - pronged approach that involves a number of strategic plans. chief and foremost is the second financial master plan. this plan, which takes into account major global developments such as regional integration and global regulatory reform, will further this vision of a modern and inclusive financial sector landscape. at the same time, we are pursuing ways to improve financial system infrastructure, including through upgrades to the payment systems to promote more efficient settlement of private sector transactions. complementing these efforts is our development of the capital account liberalization master plan aimed at facilitating and encouraging more outward investment by thai residents in foreign assets. apart from the sizeable diversification gains to be had, a more streamlined capital account and foreign exchange regulatory regime will help to boost financial market development and reduce costs for the private sector. finally, in recognition of the fact that the full benefits of improvements in financial services cannot be realized without adequate readiness on the part of consumers, we have recently launched the financial consumer protection center to provide financial education to the public. in all this, it must be stressed that the bot can only do so much. effective upgrading of thailand ’ s competitiveness and lifting our level of productivity requires strong commitment from all segments of the economy. a common vision among all stakeholders is necessary, especially when it comes to implementing tough structural reforms. the bot will strive to be an active participant in pushing forward the national agenda on reforms, particularly on issues that involve the public sector, to upgrade the efficiency of our economy. let me end by thanking the german business community for the substantial contribution that you have made to our economy and i very much hope to see the mutually beneficial relationship between our countries continue