African Central Bank governors converge on Abuja for talks on price stability

African Central Bank governors are converging on Abuja, beginning today, to commence week-long discussions on how to better deploy monetary polices to deliver price stability for the continent rattled by low commodity prices.

Nigeria is hosting this meeting for the first time in 17 years.

With the theme: “Unwinding Unconventional Monetary Policies: Implications for Monetary Policy and Financial Stability in Africa” the meeting is expected to discuss avenues through which African Central Banks can unwind the impact of unconventional policies so that monetary policy can return to its core function of stabilizing short term prices.

But sources at the CBN say the meeting would also look at how to harmonizes their Monetary and fiscal policies for a more efficient economic delivery.

Though discussions will commence on Monday, President Muhammadu Buhari is expected to declare open the 39th Ordinary Meeting of the Association of African Central Banks (AACB), being hosted by the Central Bank of Nigeria (CBN), on Thursday.

Sources at the Central Bank of Nigeria (CBN) further disclosed that the four sub-themes of the meeting “will address various strands of the broader picture by looking at the implications of unwinding/versus not doing so, likely impacts that may follow the unwinding and how they can be mitigated, implications on financial stability and the role of fiscal policy in closing any gaps opened up in the process’.

A host of international speakers from the academia, central banking and government circles are expected to share both theoretical and practical experience with the Assembly.

The AACB Assembly of Governors Meeting of Friday, August 19, 2016, is to be preceded by meetings of the AACB Technical Committee and the AACB Bureau billed for Monday, 15 and Wednesday 17 August 2016, respectively; as well as the AACB symposium to be graced by President Buhari.

Expected to be guests of Nigeria’s Central Bank Governor, Godwin Emefiele, who is also the Vice Chairman of the group, is the AACB Chairman and the Governor of the Central Bank of Central African States (Banque des Etats de l’Afrique Centrale – BEAC), Lucas Abaga Ncama and his colleagues from across the five sub-regions based on the African Union regional classification.

The Association of African Central Banks was formed on May 25, 1963 at the summit of African Heads of States and Governments held in Addis Ababa, Ethiopia.

By the Statutes of the Association (as amended at Kampala, Uganda on August 19, 2003), its objectives are:not promote co-operation in the monetary, banking and financial spheres in the African region; assist in the formulation of guidelines along which agreements among African countries in the monetary, banking and financial fields shall be reached; as well as help in strengthening all efforts aimed at bringing about and maintaining price stability and financial stability in the African region.

The others are to examine the effectiveness of international economic and financial institutions in which African countries have an interest and suggest ways of possible improvement; and envisage, following a well-timed and sequenced convergence process, the advent of a single currency and a common central bank in Africa.

BusinessDay learnt that currently, the Association is collaborating with the African Union in formulating and implementing the African Monetary Cooperation Programme (AMCP).

It was also gathered that ground work for the establishment of the African Central Bank is now going on through the Steering Committee manned by experts from the African Union and the AACB. The Secretariat is located in Abuja, Nigeria.

Two other monetary institutions agreed by the AU, the African Monetary Fund and the African Investment Bank, are also being set up in collaboration with the Association.