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Given its small foreign exchange reserves, it might also need to maintain capital controls.
At Allfirst, Mr. Rusnak was able to deflect questions about what he was doing, probably because he appeared to be enhancing the profitability of his bank's relatively small foreign exchange business.
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"The smaller foreign exchange shops are more competitive and I find their service level is much higher," she said.
Secondly, smaller foreign-exchange reserves mean less "collateral" to enhance the country's creditworthiness; they raise the cost of money more generally.
But Indonesia entered the crisis with a small budget deficit, considerable foreign exchange reserves and a better regulated banking system.
A contentious idea in economics is that levying very small taxes on transactions in foreign exchange markets, might help to reduce market volatility.
Caught off guard and partly lacking the skills to hedge against foreign exchange volatility, many small Chinese exporters have closed after China revalued the renminbi by 2.1percentt against the dollar in July 2005.
"Every year, banks charge small businesses $50 billion in wire and foreign exchange fees," Forzley said in a statement.
The financial trading company, which launched originally as an online foreign exchange trading platform, is small but growing with an average of 2,000 new accounts opened every month.
"We're too small to hedge our risks in terms of foreign exchange".
But that remains several years off, considering how small the share of the fixed-income and foreign exchange markets these Internet trading platforms have garnered so far.
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