face much vulnerability as we keep enhancing our regulatory and supervisory framework. we have even been commended by international institutions for the appropriateness of our policies, especially our exchange rate policy. so i have a number of reasons to feel satisfied and happy. most of all, i feel a sense of accomplishment with regard to my mandate. having said that, we are perfectly aware of the challenges that 2011 will bring with it and we have no intention of resting on our laurels. 54. dear stakeholders, at the beginning of a new year, when the world economy is on a two - speed recovery path – with advanced economies, our main partners, still recovering slowly, and the emerging economies bubbling along to the point of overheating, in some cases –, the global economic environment still remains very uncertain. our small and vulnerable economy is likely to suffer new strains and stresses. but i look at the future with cautious optimism. we have been able to stay the course at the height of the crisis and i am confident that we will be able to come out of it in pretty good shape. let us therefore harness all our resources and efforts to make things better for all of our fellow - citizens. i wish you all a very happy and prosperous new year. rundheersing bheenick bis central bankers ’ speeches

for the week july 7th - 13th – had “ banksters ” emblazoned on its cover in large characters, complete with gangster - like cut - outs of bankers in dark - goggles by way of illustration. the only thing missing from the picture was some machine - guns or ak 47 rifles in their hands. but who needs these crude weapons when bankers can go around in total impunity toting the much more powerful “ weapons of mass financial destruction ” – as warren buffet put it. two days ago, the respected chairman of the british financial services authority, lord turner, used the “ bankster ” word on bloomberg. bankers, the world over, cannot walk out. there is no place to hide! instead of walk - outs, we need work - outs − to purge the system of crooked practices and crooked individuals. we need to shine the torch of transparency on everything connected with banking. corporate governance is key. we, at the bank, have examined the matter at length. we are issuing a revised guideline on corporate bis central bankers ’ speeches governance. very shortly, we will also issue a consultation document on basel iii. on a separate note, we are in the final stages of setting up the deposit insurance scheme, which is a missing link in our financial infrastructure. let me say a word on the special line of credit in foreign currency that we have offered to banks for on - lending to exporters. with this measure, the bank is using its own balance sheet in an attempt to resolve issues faced by enterprises at the micro - level. this has a cost to us. the bank cannot keep this line of credit open indefinitely. judging from some press reports, it would seem that some banks are able to meet the demand at comparable terms on their own. if that is so, well and good! let them get on with it. others claim there is no demand for such foreign currency loans in the first place as exporters are apparently quite happy with their foreign currency exposure – and that includes the very real depreciation risks of their export currencies. let us bear in mind that micro - economic matters are not the normal business of the bank and we have taken extra pain to explain the rationale behind our unusual move aimed at a very specific segment of our constituency. rest assured that we have no difficulty in re - focusing our efforts back on the macroeconomic front, and on the broader needs of our complex multiple constituency. we will, therefore, soon start redep