International Financial reserves management requires to be conducted using different financial instruments. This ensures that reserves can be liquidated promptly and in an efficient manner to provide the necessary foreign exchange for the implementation of policy objectives related to, for example, meeting balance of payments and debt service needs and/or limiting external vulnerabilities
To assist COMESA Member States, manage their reserves more prudently, the COMESA Monetary Institute has trained staff from 14 Central Banks on Financial Instruments and their Role in International Reserve Management.
The training was conducted from 23 to 27 September 2018 in Cairo, Egypt with the aim of inculcating an in-depth understanding of the role of financial instruments among the staff drawn from DR Congo, Djibouti, Egypt, Eritrea, Eswatini, Kenya, Libya, Malawi, Rwanda, Sudan, Tunisia, Uganda, Zambia and Zimbabwe.
Addressing the delegates, the Sub-Governor for Economic Research and Governor’s Advisor for African Affairs in the Central Bank of Egypt Dr. Naglaa Nozahie, stressed that the skills acquired will ensure that Central Banks of the region use international reserve in an efficient and optimal manner.
Director of the COMESA Monetary Institute Mr. Ibrahim Zeidy, in his remarks to the participants, thanked the Central Bank of Egypt for valuable support over the years. He stated that maintenance of adequate level of international reserves was an important criterion for achieving the COMESA Macro-Economic Convergence Criteria.
Mr Zeidy underscored the need for in-depth understanding of the role of financial instruments and risk management practices in the preservation of liquidity and security of reserves, while minimizing the cost of holding reserves.
The training was jointly hosted by COMESA Monetary Institute (CMI) in collaboration with Central Bank of Egypt.