The 46th Conference and 30th Meeting of the SEACEN Board of Governors concluded on 26 February in Colombo.
At the Conference, Governors noted the challenges facing emerging markets during the post-global financial crisis from the perspective of SEACEN central banks. These include the exit strategies to phase out the macroeconomic stimulus packages implemented during the recent crisis. They observed that any transition strategy must be compatible with the emerging domestic and international environment and should be well coordinated and appropriately sequenced. In addition, Governors stressed the need for strong leadership and decisive action, particularly in periods of crisis.
Governors recognized that price stability could no longer be the single focus of central banks and emphasized a greater role for central banks in fostering financial stability due to the increasing linkages between the macroeconomic environment and the financial sector. They emphasized the need for sound macroeconomic policies, complemented by macro-prudential measures to ensure a strong economic and financial system.
Governors discussed the vulnerability from large and volatile capital flows and its implications for monetary and exchange rate policies. Governors emphasized that the effectiveness of the policy choice depends on the nature of capital flows. They discussed the need for a more robust surveillance system and greater cross border cooperation to monitor capital flows. They also emphasized the need for a more developed financial system to mediate these capital flows and a more liberalized environment to encourage outward investment. Governors also discussed the need to pay more attention to the volatility in the exchange rate caused by capital flows, as it had an adverse impact on small open economies.
Governors highlighted that SEACEN's unique position as the most inclusive regional forum for central banks with a wide network base provided platforms to promote excellence in learning in central banking and to foster collaboration among member banks. The Centre's learning solutions in core central banking knowledge areas, namely Macroeconomic and Monetary Policy Management, Financial Stability and Supervision, Payment and Settlement Systems and Leadership and Governance, are highly contextualized to build central banking capabilities in the region. To further elevate the Centre, Governors endorsed SEACEN's vision: “To be the Regional Learning Hub for Central Banks in the Asia-Pacific Region”.
Governors expressed their gratitude to President Mahinda Rajapaksa for his presence at the Opening Ceremony.
Governors accepted with thanks the offer of The Bank of Korea to host the 47th Conference of SEACEN Governors and 31stMeeting of the SEACEN Board of Governors in 2012.