Your Chairperson's thoughts
Q: Having chaired last year's conference and also chairing the conference this year, what can participants expect from NALM Africa?
A: NALM Africa presents unique opportunity for participants to get together in a conducive environment to learn and discuss issues that are pertinent to African central banks that invest in global markets. The topics discussed address ongoing issues in reserves management as well as anticipate events and developments that may impact asset and liability management in the foreseeable future. Discussions are wide ranging and highly informative
Q: Why do you think it’s important for central banks to come together to discuss their experiences at this year’s NALM Africa conference?
A: Central banks typically learn as much from each other, as they do from academic or structured programmes. They are able to fast track their knowledge base by sharing experiences in a cost effective manner. The relationships established at NALM open doors for references long after the conference is over. The occasion also presents a window for benchmarking and mutual exchange of staff and/or information, as necessary
Q: What would you say are the main challenges on the horizon for reserve managers?
A: As I see it, central banks are going to have to work harder to optimise returns on their portfolios to assist in debt repayment, especially where their Governments have been borrowing to fund infrastructure and other projects. Also, reserves are not growing as fast as they did a decade or so ago, requiring more skill and care, together with a likely relook at the reserve management strategy, as well as the investment objectives. In some investment markets, bond yields and asset prices are reacting to interest rate policy decisions. The million dollar question is; is another financial crisis looming, after a long period of repressed interest rates globally, and what risk mitigations are African central banks are thinking about, in the event