For central banks, the exchange rate smoothing policy represents an important step aimed at supporting economic growth through the easing of monetary restrictions.
This measure contributes to a more active currency circulation, which facilitates the stimulation of economic growth. It allows for a freer regulation of interest rates and volumes of lending. Central banks implement such policies during periods when the economy needs additional support to avoid recessions or to stimulate growth during downturns.
Such measures help stimulate business and consumer spending, which in turn contributes to increased production and the creation of new jobs. Ultimately, the currency smoothing policy is an important instrument for supporting economic development in the country.
