B) Reread the article again and sum up the conclusions of the meeting described in it

Central Banking Reforms Advance in Baltic and CIS Countries

On May 13-14, 1996, the IMF arranged the ninth coordinating meeting on central banking technical assistance to the Baltics and the Commonwealth of Independent States central banks. The meeting was held at the Bank for International Settlements in Basel.

Reforms in the monetary, exchange, and banking areas in the Baltic and the CIS countries have sought to achieve a market-based determination of interest rates and exchange rates, to control banking system liquidity through indirect instruments, and generally to foster the use of markets for central banking operations. Implementation of market-based arrangements for monetary control has required careful coordination of reforms to foster money and foreign exchange markets and to strengthen key functions of central banking, including critical actions in the payment system, accounting, and bank supervision. Reforms have been designed to bring about macroeconomic stabilization as well.

The participants of the meeting stressed that in most countries, following the introduction of new laws, the central bank has de jure independence from political authorities. It has the authority to formulate and implement monetary policy and to implement foreign exchange policy. Most countries have liberalized deposit and lending rates and rely mainly on indirect instruments, although the use of market-based instruments is limited.

Interest rate and exchange rate management is typically governed by a ceiling on net domestic assets of the central bank and a floor on net international reserves. Many countries in the regions have developed money, securities, and foreign exchange markets.

Monetary management is exercised, primarily, through reserve requirements, refinance facilities, and intervention in the foreign exchange market and, to a limited extent, through auctions of treasury bills and central bank papers.

Direct central bank credit to the government, although decreasing, remains an important source of reserve money creation in some countries. Public debt management is based on treasury-bill auctions, which are being developed in most countries; secondary market activity typically remains limited.

Foreign exchange operations and the management of the exchange rate are in most cases conducted through an interbank auction arrangement, although dealing outside the auctions is increasingly prevalent.

In the payment system, central banks provide most clearing and settlement services and have streamlined operations to meet user needs.

Participants agreed that the causes of bank insolvencies had typically been a combination of poor lending decisions, inadequate licensing and supervision procedures, and structural changes in the public enterprise sector.

Participants at the May meeting recognized the dramatic advances made by most central banks in the region in introducing market-based instruments of monetary and exchange management and in fostering money and exchange markets. They stressed, however, that most countries have new work ahead of them in restructuring their banking systems.

Words you may need:

Bank for International Settlements Банк международных расчетов

de jure де-юре

central bank papers векселя центрального банка

prevalent adj (широко) распространенный

settlement services услуги по расчетным операциям

streamline v совершенствовать, модернизировать

Дата добавления: 2014-11-29