International Symposium - 50th Anniversary of the Central Bank of Madagascar

As part of its 50th anniversary celebrations, the Central Bank of Madagascar (Banky Foiben'i Madagasikara) brought together governors or deputy governors of African central banks, experts, opinion leaders and financial sector decision-makers from around the world  to discuss two essential themes: central banking and climate change, as well as central banking and financial and technological innovations. 

FERDI was extended an invitation to aid in the program's preparation and took part in the sessions.

Patrick Guillaumont, President of FERDI, moderated this session, which focused on monetary and exchange rate policies in the context of climate change. During this session, Roland Kpodar, Head of Division at the IMF and Senior Fellow at FERDI, presented the challenges posed by climate change for monetary policy and discussed its implications for the core missions of central banks. Sylviane Guillaumont Jeanneney, Scientific Advisor at FERDI  delved into the connection between exchange rate policy and climate change.  Her research underscores that the systematic use of exchange rate depreciation to enhance competitiveness can result in a heightened specialization in the export of intermediate industrial goods that emit substantial levels of CO2, along with the unsustainable depletion of forest resources. To bolster the balance of payments, it is advisable not to automatically resort to exchange rate adjustments but rather to adopt a stable monetary policy aimed at preserving international competitiveness. Additionally, consideration should be given to fiscal policies and institutional reforms that promote foreign trade.

This session provided a platform for the exchange of ideas on resilience policies and facilitated the exploration of structural solutions through collaboration among participants. 

Florian Léon, a Research Officer at FERDI, delivered a presentation during the session dedicated to financial and technological innovations. He outlined the primary challenges posed by digital credit for central banks and financial regulators. Mobile money services have achieved significant success across the continent, albeit with varying degrees of effectiveness, and have had a profound impact on the population. The prevailing trend in the sector is to diversify the range of services offered, encompassing payment, insurance, and credit solutions. The presentation particularly emphasized the challenges associated with the rapid development of digital credit innovation, which first emerged in East Africa in the mid-2010s. Authorities confront three key challenges in supporting this sector while upholding financial stability and safeguarding consumer interests: the implementation of stringent regulations applicable to all digital credit providers, effective data management, particularly in relation to credit registers, and the introduction of financial education programs tailored to digital credit and digital risks by central banks.

This session highlighted the ongoing initiatives undertaken by central banks and financial institutions to address the complexities posed by technological innovations.