The introduction of the Dodd-Frank Act in the US and the Basel Committee on Banking Supervision's Basel III capital accord around the world look set to drive up the costs of central bank sterilisation efforts in countries with relatively open markets.

"Many banks around the world have become much more conservative in their market practices and the tolerance with regard to the credit and market risk they can bear in the face of new regulations," Javier Duclaud, head of banking operations at the