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Central Changes


In line with the best international practice Central Bank will focus on the core objectives of economic and price stability and ensuring the stability of the financial system, dropping a number of subsidiary objectives that tended to distract the Bank in the past.rn

rnIn the conduct of monetary policy itself the Central Bank has given itself much more room to maneuver.rn

rnThe three member Monetary Board, which makes up the core decision making body of the institution that the public loosely refer to as the Central Bank is to be expanded with three outside members, which will include private sector participation.rn

rnFor decades, a closed club consisting of the Treasury Secretary, another appointed member and the chairman of the Monetary Board, who is the Governor of the Central Bank, took key policy decisions.rn

rnOther reforms may bring sweeping changes to the conduct of monetary policy.rn

rnIn one instance Central Bank will be allowed to cut reserve ratios below the current statutory limit of

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