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Risks Management Manual for Central Banks Developed

COMESA Monetary Institute has developed a manual on “Liquidity, Interest  Rate and Exchange Rate Risk Management” for COMESA Central Banks. The manual gives guidance on best practices in liquidity, interest rate and exchange rates risks management, as related to foreign reserve holdings of Central Banks.

In preparation  for the publishing of the manual, the CMI and  the Central Bank of Egypt organized five day’s validation workshop in Cairo, Egypt. The workshop reviewed the manual which will serve as a knowledge product of the CMI and provide COMESA member  Central Banks with an analytical guide on liquidity, interest rate and exchange rate risk management.

“The manual  will sharpen  the skills of users on how to prudently manage liquidity, interest rates, and market and foreign exchange risks; and, deepen their understanding of hedging tools and instruments that could serve as protection from unwanted  volatility of macroeconomic variables and external shocks,” Mr. Ibrahim Zeidy, the Director of the CMI told the delegates.

In her statement to officially open  the workshop, Dr. Naglaa Nozahie, the Assistant Sub-Governor Economic Research Sector of the Central Bank of Egypt. She observed that the dynamic nature of economic problems facing the region today requires proper diagnosis. This would be possible by using appropriate tools for effective solutions to be found.

“At the heart of the problem for central banks, is balancing policy actions against the risk exposures from such actions,” Dr. Nozahie noted.

The development  of the manual follows a decision of the 22nd Meeting of the COMESA Committee of Governors of Central Banks held in Bujumbura, Burundi in March, 2017.

Participants from Burundi, DR Congo,  Egypt, Eritrea, Kenya, Libya, Madagascar, Seychelles, Sudan, Swaziland, Uganda, Zambia, and Zimbabwe attended the workshop.

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