IMF review of CBS transparency practices published: |29 September 2022

‘CBS sets a high benchmark for transparency’

The International Monetary Fund (IMF) has published its findings of an evaluation of the transparency practices of the Central Bank of Seychelles (CBS).

The review was conducted at the request of CBS, following its adoption of the IMF Central Bank Transparency Code in August 2020, becoming one of the early adopters of the voluntary code.

A five-member delegation from the IMF was in Seychelles from June 23 to July 5, 2022, to examine CBS’ governance, policies, operations, outcome, and official relations – the five key pillars outlined in the Code.

The evaluation also consisted of discussions with CBS officials as well as external stakeholders, including representatives of government institutions, financial

service providers, the National Assembly, the media and the private sector.

In providing a summarised overview of the evaluation, the IMF report states: “The Central Bank of Seychelles (CBS) sets a high benchmark for transparency, given the economic, and financial development and literacy circumstances of Seychelles, which is recognised by the stakeholders, thus maintaining a high level of trust and accountability.”

CBS’ communication with key stakeholders and financial education efforts have also been commended.

“The CBS took the lead in communications on extraordinary support programmes during the Covid-19 pandemic, regularly engaging with the public using plain language and various communication tools. It is also making great efforts to promote financial inclusion in Seychelles by developing and implementing a broad agenda on financial education and enhancing consumer protection in the financial sector,” states the IMF report.

The IMF findings show that CBS has an advanced transparency framework in the areas of foreign exchange management, foreign exchange reserve management, communications, financial stability, and institutional relations with the domestic official stakeholders.

The CBS is also viewed to be suitably transparent about its monetary policy strategy for achieving its primary statutory mandate of price stability, and appropriately discloses its operational framework, policy actions, and outcomes.

In terms of recommendations, the report notes that there is room for improved transparency practices, mostly in the areas of governance and accountability arrangements, confidentiality policy, Anti-Money laundering/countering the financing of terrorism (AML/CFT) supervisory policies and internal AML/CFT controls.

The CBS Governor, Caroline Abel, has welcomed the publication of the review report saying:

“The step to become one of the early adopters of the Central Bank Transparency Code in 2020 also testified to the Bank’s commitment to proactively disclose information to the public in line with the Access to Information legislation; hence it is very fitting that the IMF’s evaluation of CBS’ transparency practices has been published today as we commemorate the International Day for Universal Access to Information. The findings confirm the Bank’s commitment to transparency

across its governance, policies and activities, notably its communication to all stakeholders, including the public, as we endeavour to foster greater collaboration and understanding of the work done by the institution.”

The report also outlines an action plan detailing immediate and short-term proposals to address various recommendations aimed at further improving transparency in areas that have been identified following the IMF review.

The full report can be accessed online:

IMF website:

https://www.imf.org/en/Publications/CR/Issues/2022/09/27/Seychelles-Central-BankTransparency-Code-Review-523940

CBS website:

https://www.cbs.sc/Downloads/mediaCenter/featurePublications/IMF%20Report%20-

%20Seychelles%20Central%20Bank%20Transparency%20Code%20Review.pdf

Press release from CBS