Central Bank of Seychelles (CBS) symposium |14 December 2017
CBS should play a more proactive role in financial education, says governor Abel
The Central Bank of Seychelles has to play a more pro-active role in financial education, its governor Caroline Abel has said.
Ms Abel said this in her opening remarks during the Central Bank of Seychelles (CBS) symposium on Tuesday at the Eden Bleu hotel.
The symposium coincides with the bank’s 40th anniversary and the chosen theme: ISLAND ECONOMICS – The Case of Seychelles, which she said is very fitting to the occasion.
The CBS was established as a financial authority in 1978 and it has seen great evolution of late and has been at the forefront of many policy changes especially when the government took the decision to make major economic reforms in 2008.
Other than governor Abel, the other prominent speakers and panelists from both the public and private sectors included Norman Weber, chief executive of the Seychelles Banker’s Association; Paul Chow, representing the private sector, Patrick Payet, principal secretary for finance in the Ministry of Finance, Trade and Economic Planning and staff of the bank.
Ms Abel also formed part of the panelists.
Governor Abel said: “The aim is to explain the linkages between all sectors of the economy and how important are the decisions we make as decision-makers”.
She also announced the upcoming financial literacy campaign the CBS will be embarking on together with other stakeholders because when looking forward to the 40 years, she said CBS needs to get closer to the general public to make known what central banking is all about.
Ms Abel added that when we look at central banking around the world, the Seychelles one is no different.
“One common element is price stability. And for us in Seychelles this is our prime objective among others where we act as advisor to the government and by making sure we have a sound financial system,” she said.
She also noted while there has been challenges, the CBS has managed to contribute to the improved economic resilience like lower inflation environment which she advised not to confuse with cost of living; has improved the external viability of the country to the level of reserves the country has and which has been done through the coordination of principally the department of finance which has resulted in a sustainable and coordinated policies. The business climate though not yet to that satisfactory level, has recorded an improvement. There is also an improvement in the banking sector though they can do more, to name some of the success stories.
On the economic challenges, Ms Abel said the increased demands for credit which has gone towards consumption which she said is a long-term issue for the Central Bank.
“When we consume we need to have foreign exchange and also the country is being challenged by illicit trade like the drug business. This affects CBS in terms of the intensity of use of cash,” she said while pondering on the idea of whether CBS should put a cost on the use of cash where people have to pay to withdraw cash so as to move away from such a situation.
She mentioned other challenges as a policy maker such as the management of public expectations and lower interest rate.
“We can have a lot of debates about it but we have to take consistent measures that will make sure the economy remains stable,” said Ms Abel. “Given that we are small, she said, it is important that we put our feet down when it comes to financial issues affecting our economy”.
In his presentation on the development and challenges in the banking sector, Mr Weber said there are eight commercial and retail banks in Seychelles under the supervisory role of the CBS. He mentioned educating the public on the use of the banking sector and ways to provide more entrepreneurs with the capital requested as some of the challenges.
Mr Payet’s presentation was based on the intricacies of the monetary and fiscal policies.
Those present voiced out their views, concerns and questions during the open floor discussion.