by almost three per cent. a notable development in the exchange rate of the rand during the last few months has been that it has become less volatile : the rand ’ s historical volatility – a measure based on an average daily standard deviation calculation – declined from almost 21 per cent in june 2005 to below 10 per cent in october 2005, and has remained there in the subsequent two months. 9. 1 it bears repeating the fact that the south african reserve bank ( the bank ) has been given a target for inflation : it has not been given a target for the exchange rate. of course, the bank cannot disregard the exchange rate because the exchange rate can exercise considerable influence on developments in inflation. but the bank understands that neither it nor anyone else can claim with any confidence to know the equilibrium level or time path of the exchange rate. the bank also understands that to switch focus to the exchange rate could mean losing control of inflation. 10. broadening access to financial services, targeted investment and increased economic cooperation remain high priorities on the agenda for south africa and the bank continues to monitor and support new initiatives in this regard. the bank makes a significant contribution to economic co - operation in africa by liaising closely with the association of african central banks regarding the implementation of the african monetary cooperation programme. 10. 1 in february 2005 the bank hosted a seminar with the european central bank ( ecb ), attended by southern african development community ( sadc ) central banks in which views on the road towards a single central bank for sadc were discussed against the background of the ecb experience. the mou on the harmonisation of legal and operational frameworks of sadc central banks was finally approved by ministers for finance at their meeting held on 5 august 2005 after extensive consultations. at their september 2005 meeting, the committee of central bank governors ( ccbg ) in sadc signed memoranda of understanding ( mous ) on exchange control, information and communications technology and payment, clearing and settlement systems. 10. 2 looking forward to the future, it is the case that there are promising signs that the targeted inflation rate will remain within the stipulated range. this, as my former colleague ian plenderleith noted, is not just something to look back on with satisfaction. rather, it is important to recognise that the stable framework for a normal, wellrun economy that has been achieved to date provides the foundation for sustained, if not improved economic performance in the years ahead. 10. 3 going forward

extending our network of bundesbank representative offices was particularly close to my heart, and i am pleased to say that we stabilised this network during my tenure and added two new locations – istanbul and pretoria. now we have representatives everywhere we want to be represented. you will no doubt have gathered by now that the international dimension was always particularly important to me. indeed, i recall my first franco - german financial summit in 2010, where i had the privilege of standing in for bundesbank president axel weber. on the french side, banque de france governor christian noyer was represented by his deputy, and my colleague and friend, jean - pierre landau. christine lagarde, still the french finance minister at that time, looked at the two of us before turning to german finance minister wolfgang schauble to say : “ well, wolfgang, if the representative of germany's central bank has the surname dombret and the one from france is called landau, there isn ’ t really much point in holding these francogerman summits any more, is there? … ”. but representing the bundesbank externally was just one part of my duties. being a manager, i aspired to mould my surroundings a little from the inside as well. but ultimately, the bank is one of those places where the institution moulds its executive board, which is why i am now proud to say that i am a bundesbanker. at the same time, i am pleased to have implemented one project or the other within the bank. i never regarded the bundesbank as an ivory tower out here in the ginnheim wilderness. interaction with the markets and dialogue with the banks was a cause i genuinely believed in – one which i both pushed and encouraged. with all due distance, i always felt that permeability between the worlds – between the central bank and politics, between supervisors and banks – was particularly important. parallel worlds – or " echo chambers ”, to use today ’ s parlance – are of no use to anyone ; hence my enduring commitment to forging a constructive and open relationship between central bankers and bankers. i dare say my mission to bring banks and supervision closer together over the past eight years has been successful – and i ’ m talking here not about nepotism or fraternisation but about nurturing a greater sense of mutual understanding. in this vein, i would also like to take a stand against the wholesale criticism levelled against bankers who “ switch