FSB Sub-Saharan Africa discusses global,regional economic and financial market challenges
Paul Arithi 
The group discussed initiatives to enhance cross-border payments in the region, including potential use of central bank digital currencies for cross-border payments while noting the importance of compliance with anti-money laundering and combating the financing of terrorism (AML-CFT) standards.{PhotoCredit/Courtesy}
The Financial Stability Board (FSB) Regional Consultative Group for Sub-Saharan Africa met in Diani, Ukunda, hosted by the Central Bank of Kenya, to discuss global and regional economic and financial market challenges, as well as progress in strengthening arrangements for crisis preparedness and management. Members also received an update on the FSB’s work plan for 2023.
The group discussed the increasingly challenging outlook for financial stability in the region arising from volatile commodity markets, high inflationary pressures and tighter global financial conditions. The group also discussed episodes of illiquidity in various financial markets and other vulnerabilities affecting the region, such as, the stress in global energy prices and rising debt levels. The limited fiscal policy space of many authorities in the region underscores the need to remain vigilant.The group discussed ways to enhance crisis preparedness and management in the region and the importance of cross-border cooperation.
Food insecurity is a growing issue both because of short-term supply constraints and more fundamentally through climate change.Members discussed the issues that arise for financial authorities. They also reviewed progress of the FSB’s Roadmap to address financial risks from climate change, including the FSB’s recommendations for regulatory and supervisory approaches to climate-related risks published in October 2022.
Members were updated on the FSB’s prioritisation of work to implement its Roadmap to enhance cross-border payments by improving cost, speed, access and transparency.The three priority areas are: payment system interoperability and extension; legal, regulatory and supervisory frameworks; and cross-border data exchange and message standards.
The group discussed initiatives to enhance cross-border payments in the region, including potential use of central bank digital currencies for cross-border payments while noting the importance of compliance with anti-money laundering and combating the financing of terrorism (AML-CFT) standards.
Members thanked the Central Bank of Kenya(CBK) for their very efficient organisation of the meeting.
