Ethiopian Informer
ADDIS ABABA (EI): A high-level workshop on local currencies and capital market has kicked-off in Addis Ababa Wednesday, aiming to raise central bankers’ awareness on currency risk management and its critical role in capital markets development.
The three-day Central Bank Introduction Workshop, which is underway at the headquarters of the UN Economic Commission for Africa (UNECA) in Addis Ababa focusing on “Local Currency and Capital Market Development for Central Bankers”, is jointly organized by the UNECA, The Currency Exchange Fund (TCX), the Eastern and Southern African Trade and Development Bank (TDB, FSDA, and the Bill & Melinda Gates Foundation.
Addressing the opening session on Wednesday, Sonia Essobmadje, Chief Innovative Finance and Capital Markets Section at the UNECA, said that experts and policy-makers attending the workshop will discuss into the intricacies of local currency financing.
She said local currency financing is a cornerstone of sustainable economic growth and a buffer against the vulnerabilities of global financial turmoil. “Our discussions will focus on the challenges and opportunities associated with the development of robust capital markets in Africa,” Essobmadje said.
Essobmadje stressed that the significance of local currency financing cannot be overstressed, as it is a critical enabler for mobilizing domestic resources, mitigating currency risk, and fostering a stable environment for investment. “By prioritizing this form of financing, we are taking a proactive step towards insulating our economies from external shocks and creating a more resilient financial ecosystem,” she said.
Describing the development of capital markets as “paramount” in Africa’s quest for economic transformation, the UNECA official stressed that capital markets serve as a conduit for channeling savings into productive investments, facilitating the efficient allocation of capital, and ultimately driving economic development.
According to the UNECA, the workshop will explore innovative strategies, share best practices, and engage in constructive dialogue to address the barriers that impede the growth of our capital markets. It will also examine the role of regulatory frameworks, the impact of technological advancements, and the importance of regional collaboration.
The workshop is also said to serve as a crucial opportunity to lay down a roadmap that will lead to the establishment of vibrant, inclusive, and sustainable capital markets towards building a financial landscape that not only meets the needs of the present but also secures the prosperity of future generations.
During the course of the coming three days, the workshop will feature sessions covering topics such as hedging, money markets, bonds, policies, and frameworks. It will also include case studies, panel discussions on market creation, and strategies for effective collaboration to build the best ecosystem, it was noted.
(PHOTO shows Sonia Essobmadje, UNECA’s Chief of Finance and Domestic Resource Mobilization Section, at the workshop – Photo – UNECA)
