«MCM was represented at the CEF’s Meeting of Coordinators and Advisory Board in October 2016, which provided an excellent opportunity to learn more about the CEF’s mission. A key strength of the CEF is the way its workshops and training events manage to combine the focus on the technical matters with an emphasis on change management, something that is key for reforms to actually take off. Since then, MCM has organized, jointly with the CEF, one workshop on the development of local currency markets in the region, which took place in February 2017; and is in the process of planning a second joint workshop on Central Bank Board governance issues that is to take place in June 2017 (see further below). A third joint workshop on macroprudential policies is scheduled for the fall of 2017. Looking ahead, MCM is also exploring the possibility of placing a resident advisor at the CEF to provide technical assistance and training to the countries in South-east Europe.

Development of local currency markets

Financial market development is a priority for policy makers in many countries. For many years, the IMF has provided technical assistance on this topic, including a recent mission in the Western Balkans on the development of local currency markets to reduce financial stability risks and the costs of financial euroization. MCM cooperates with the CEF to reach out to its constituents on market development and to share with them the IMF’s technical experience on that matter. The CEF is one of few fora where policy makers from South-east Europe can meet and exchange views on their respective experiences. It was, thus, extremely useful for the IMF to participate in the CEF workshop on “Deepening Money Markets and Promoting the Use of Local Currency Instruments” in February 2017.

Central Bank governance

Central banks are increasingly under pressure, often due to new financial stability mandates, expanded balance sheets, increased cyber-security risks, and societal demands for more communication. Central bank governance provides tools to deal with this pressure in an effective way. It includes key concepts such as central bank independence, board decision-making structures, internal control, and the legal framework. The IMF’s Monetary and Capital Markets Department cooperates with the CEF to reach out to its constituents on central bank governance best practices. The multi-day workshop focuses on tailor-made governance solutions, relevant input from peer central banks, and helping board members and operational staff alike to improve central bank decision-making: creating stability in times of volatility.”»