Regional central financial institution governors are giving help to a pilot programme for the Caricom funds and settlement system referred to as CAPSS.
On the finish of a two-day assembly hosted by the Financial institution of Jamaica from November 2-3, the central bankers “resolved to advance the work on intraregional funds” and in that regard have given their help to the CAPSS, which regional governments say will contribute to the achievement of the total integration of the nationwide markets of the 15-member Caricom buying and selling bloc right into a single, unified and open market space.
CAPSS will utilise the expertise underpinning PAPSS, the Pan-African Funds & Settlement System of the African Export-Import Financial institution.
The partnership was first disclosed by Afreximbank President and Chairman Professor Benedict Oramah, final week, whereas addressing the opening of the AfriCaribbean Commerce and Funding Discussion board in Guyana.
Oramah stated on the discussion board generally known as ACTIF23 {that a} funds and settlement programme with an African financial institution was been chosen to run a pilot programme for Caricom central banks.
“We hope that very quickly they funds methods for Africa and Caricom might be built-in,” he stated on the occasion in Guyana.
Oramah recalled that he had addressed regional leaders earlier this yr on helping the area in establishing a Caricom Import-Export financial institution of which his financial institution could be a shareholder “if invited to”.
In an announcement following the 61st Caricom Committee of Central Financial institution Governors on the weekend, the bankers stated they reviewed the regional and international monetary markets, macroeconomic surroundings, regional financial outlook and financial coverage.
“The regional financial efficiency evaluation recognized the important thing dangers to macroeconomic stability in regional economies through the post-pandemic interval, together with excessive imported inflation, geopolitical developments and local weather vulnerability. It concluded that the area has usually recovered from the pandemic with a return to progress and inflation that’s trending downward, whereas the banking system remained sound.”
Final week’s assembly mentioned a number of technical initiatives of the Committee of Central Financial institution Governors, which stated in its assertion that the regional expertise danger administration framework has been up to date to incorporate cyber-resilience rules and a cyber-incident response and restoration perform.
Work can also be persevering with on the event of a regulatory framework on local weather danger and inexperienced financing.
The central financial institution governors acquired and endorsed a proposal for the institution of a Regional Central Financial institution Group of Reserves Managers, which can meet nearly and share experiences and approaches within the administration of nationwide reserves.
In addition they agreed to enhance communications among the many regional central banks, with Jamaica scheduled to host the subsequent assembly of the communications community, and mentioned experiences in implementing and utilizing polymer banknotes and recognized successes, challenges and different implications related to the introduction, and agreed to proceed sharing data on the operational degree.
To this point, the polymer banknotes have been launched in Barbados, the Jap Caribbean, Jamaica and Trinidad & Tobago.
Different issues mentioned on the assembly included updates on continued vigilance in anti-money laundering surveillance and compliance, in addition to additional harmonisation of financial institution supervisory practices by way of cooperation and coaching.
“Many regional central banks have applied components of the Basel II framework, whereas some are additionally implementing the Basel III framework. Cybersecurity stays a significant space of focus for regional central banks, which have elevated collaboration, data sharing and coaching in areas together with cloud coverage frameworks and cloud adoption technique, anti-phishing measures, and the event of a safety framework for synthetic intelligence options,” the assertion stated.
The assembly additionally reviewed the Caribbean central banks’ analysis programme for 2023-2025, and concluded that there was vital progress within the workstream specializing in local weather change and climate-related dangers. Nonetheless, the bankers additionally famous that there was a must step up the tempo on analysis work regarding a regional macrofinancial coverage and future paths to regional resilience.
The present chair of the Committee of Central Financial institution Governors is Richard Byles of Jamaica. Governor of the Central Financial institution of Barbados Dr Kevin Greenidge will assume the chair in 2024.
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