By Delisa Thwala
|The Central Bank of Eswatini (CBE) has welcomed part of the 60 delegates expected to take part in the Common Market for Eastern and Southern Africa (COMESA) Committee of Governors of Central Banks Meetings.
Governor Dr Phil Mnisi shared that the delegation brings with them foreign exchange opportunities and stand to boost the tourism sector.
Mnisi said the visiting countries will boost foreign exchange by contributing to Eswatini’s tourism revenue, which is a significant source of foreign exchange earnings.
“Foreign currency reserves, tourism generates foreign currency reserves for countries. Economic development where tourism revenue will help countries resolve goods trade deficits and strengthen their economy,’’ said Mnisi.
He further said, exchange rates can also impact tourism demand. For example, if a tourist’s home currency depreciates, their purchasing power decreases, which can make a destination less attractive.
However, if a destination country’s exchange rate increases, it can make tourism production and services cheaper for foreign tourists.
Worth mentioning is that, the Bank is hosting the week-long meetings because it chairs the COMESA committee.
With an array of topics to be discussed, the meetings kicked off with a gathering of the Experts of the Bureau who set the tone in a preparatory session,
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Preceding a meeting of the COMESA Committee on Finance and Monetary Affairs and ultimately the Bureau Governors later in the week.
The experts’ gathering will extend to Sunday with five key components under discussion. These include:
- Status of implementation of the decisions of the 43rd Meeting of the Bureau of the COMESA Committee of Governors of Central Banks.
- Status report on the implementation of the Regional Payment and Settlement System (REPSS) and work plan for 2025.
- Progress report on the activities of the COMESA Monetary Institute in 2024 and work plan for 2025.
- Discuss audited financial statements for COMESA Monetary Institute and COMESA Clearing House.
- Consideration of Main and Sub-Themes for the 2025 Governors Symposium
The CBE will be hosting the Common Market for Eastern and Southern Africa (COMESA) Committee of Central Banks Governors (CCBG) Meetings from November 2-8, 2024, at the CBE complex by virtue of being the Chair of the COMESA CCBG.
COMESA consists of 21 member states and its mandate is to attain regional integration through trade and investment.
The meetings will cover various facets. From November 2-3, 2024, there will be a meeting for the Experts of the Bureau, whose function is to guide on COMESA issues and reports to the COMESA CCBG.
This will be followed by an experts’ meeting for all COMESA central banks from November 4-5, 2024.
This meeting discusses issues that were deliberated by the preceding experts of the Bureau meeting and makes and/endorses recommendations to the Bureau of the COMESA CCBG.
A symposium will be held on November 7,2024 to cover two key thematic areas:
- Digital Banking and the impact of Cyber Security and Other Emerging Risks to Central Banks in the COMESA region.
- The Era of Using Big Data and Machine Learning in Central Banks and Financial Institutions: Implications for Monetary Policy.
The Governor, when officially announcing the hosting of the event with the media, shared that the CBE was honoured to be bestowed with such a flagship event.
“We are proud that while we have chair of this prestigious organization, we host this important event. This is happening at the backdrop of when the Bank recently hosted the Committee of Central Banks Governors (CCBG) Meetings in May 2024, which coincided with our 50th Anniversary,” he said.
Worth mentioning is that, the Committee of Governors of Central Banks comprises the Governors of Central Banks of all the Member States and they are in charge of the regional finance and monetary affairs.
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The CMI is responsible for conducting technical, policy, statistical, institutional, and legal preparatory work to establish the COMESA Monetary Union, with the primary goal of maintaining macroeconomic stability across member countries.
In contrast, the COMESA Clearing House facilitates the settlement of cross-border trade and services, enabling the use of local currencies for intra-COMESA transactions.
The Governor explained the structured schedule of the meetings, noting that the Bureau consists of five member central banks, elected annually, with the leadership rotating among them.
The Bureau provides essential guidance on COMESA issues and reports directly to the CCBG.