Central Banks in the SADC region remain resilient, given the current international context, with no record of stress in small and large banks, said the chairman of the Committee of Governors of Central Banks, Lesetja Nganyango.
Lesetja Nganyango noted that the SADC Committee of Central Banks (CCBG) decided to adopt international standards to make the banking system safe.
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Looking at what happened in the US and Europe, where some banks failed, the governor of the Central Bank of South Africa also admits that security conditions are different from one country to another, but, in general, he said that there is resilience in the SADC financial system.
Speaking to the press, on the sidelines of the 56th Meeting of the Committee of Governors of Central Banks of SADC, Lesetja Nganyango considered that the global economy is not in a good moment, since the emergence of the Covid-19 pandemic, despite the timid growth.
The bank manager spoke of the increase in the inflation rate, an exceptional situation for Angola, whose forecast by the National Bank of Angola (BNA) is in the range of 9% to 11%, by the end of 2023.
According to him, small economies had access to the international market with high rates, a situation that also impacted on inflation rates for small and open economies.
Commodity prices are also rising, also influencing food prices, even before the war between Russia and Ukraine, which only made the situation worse.
‘That means, for us, as small economies, to force our prices to increase the exchange rate’, he said, noting that at the level of the SADC region, the Central Banks have the obligation to increase the interest rates, justifying that Inflation is the enemy of the poor, calling this time to the attention of Central Banks to deal with inflation.
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Representatives of the region’s Stock Exchange and the SADC Executive Secretariat also attended the event, which ended Friday.
At the meeting, the CCBG strategy was analysed for the period from 2021 to 2023, as well as other SADC protocols on financing and investment that have to do with Central Banks.
With regard to SADC, the efforts made within the framework of the region’s social and economic integration were likewise reviewed.