Bhutan readies to sharpen ‘blunt’ policy instruments
Royal Monetary Authority of Bhutan considering improvements to monetary policy transmission
The Royal Monetary Authority of Bhutan is considering introducing short-term lending and deposit windows to replace its system of "sweeping overnight balances", a report released by the International Monetary Fund on June 30 has revealed.
Staff at the IMF describe some of the central bank's existing tools as "rather blunt" – singling out the cash reserve ratio (CRR) and the statutory liquidity ratio (SLR). The authorities explicitly agree with regard to the CRR. Further tools, staff say, could
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