BRIDGETOWN, Barbados, CMC—The Caribbean Community (CARICOM) Committee of Central Bank Governors has reaffirmed its commitment to using every tool in its monetary policy arsenal to combat inflation, ensure financial stability, and promote efficiency and innovation in financial services delivery.
Ten Caribbean central banks participated in the two-day virtual meeting last weekend, which was chaired by the Governor of the Central Bank of Barbados (CBB), Dr. Kevin Greenidge.
A statement issued following the meeting noted that the discussions focused on regional economic developments, particularly how easing global inflation and food prices, moderated by rising oil prices, will influence the growth prospects for Caribbean economies. They examined the differential impacts on commodity-based versus service-based economies within the region.
“Much of the meeting was dedicated to financial system issues, emphasizing payments market developments and opportunities for enhanced regional collaboration.
“As individual member countries and the region collectively seek to modernize their payment systems and accelerate the adoption of digital solutions, the governors reaffirmed their commitment to using every tool in their monetary policy arsenal to combat inflation, ensure financial stability, and promote efficiency and innovation in financial services delivery,” the statement added.
It said that recognizing the financial system’s competitiveness as crucial to economic prosperity, the governors acknowledged the common challenges citizens across the region faced, including opening bank accounts and accessing banking services.
“They pledged to work collaboratively to implement strategies and reforms that address these obstacles and improve access to banking services across the region,” the statement said, adding, “Going forward, the CARICOM Governors’ Technical Working Group on Intra-Regional Payments will engage with the Inter-American Development Bank (IDB) team on the Fully Scalable Settlement Engine (FuSSE), a collaborative project between the Bank for International Settlements and the IDB.”
The virtual meeting also provided a platform to explore various aspects of financial stability and inclusion. The statement noted that the highlights included an overview of the regional financial stability report, findings from a region-wide survey on bank fees, and updates on approaches to addressing correspondent banking issues.
“To enhance financial resilience, the governors agreed to form a region-wide central bank committee on statistics to harmonize the quality and availability of financial data,” the statement said, adding updates from regional working groups, including the recently formed Regional Central Bank Group of Reserve Managers, were also received.
The governors emphasized their commitment to implementing fintech solutions, mitigating cybersecurity risks, and incorporating artificial intelligence into central banking operations. Additionally, the Caribbean Technical Assistance Centre (CARTAC) presented on climate risk and its implications for financial stability. The statement said the governors agreed to continue incorporating climate-related risk in their financial stability analytical toolkits.
The regional central bank governors also discussed Haiti’s situation, noting that they “expressed solidarity for a durable solution.”
The next meeting of the Committee will take place in Barbados in November.
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