THE region’s financial and economic sectors are expected to be strengthened following the 47th edition of the Regional Monetary Studies Conference which is being hosted by the Bank of Guyana under the theme ‘Financial Development and Economic growth’. Expected to emerge from the three-day event, which commenced yesterday, are robust recommendations to combat the grappling effects of uneven economic growth and fragile economic and financial fundamentals. It aims too to stimulate new insights in assessing regional financial development and the direct correlation between that and economic growth.

Acknowledging that the monetary conference, over the last 46 years, has provided an important opportunity for networking and research, Governor of the Bank of Guyana, Dr. Gobind Ganga explained that it comes at a time when the region is facing new risk factors from the monetary organisations in the U.S., such as U.S. interest rates hikes and strengthening of the US dollar.
Additionally, it was deemed to be appropriate and timely given the region’s slowing growth and the effort by most territories to improve and strengthen their financial sectors.
ALL IS NOT LOST
But despite this, the Governor noted that all is not lost. In fact, he reasoned that the strengthening of the U.S. economy as well as other developed countries which are major tourist markets are expected to have a positive spin over effect in the region. In addition, those regional economies with more flexible exchange rate regimes should be able to adjust to the market forces, he said.
And while the theme of the conference begs to address whether financial development spurs economic growth or whether it is an inconsequential effect to the process of economic growth, Dr. Ganga posited that solid deliberations on this issue are expected to dominate the forum.
Sharing this view was Minister of Finance Winston Jordan who noted that the conference and the Caribbean Centre for Money and Finance (CCMF) have built up a formidable body of research and expertise in Caribbean money and finance. This expertise, he said, is even more important given the challenging economic environment in which the region finds itself.
Revealing that two of the original researchers in the regional programme of monetary studies are Guyanese, Dr. Morris Odle and Professor Clive Thomas, whose early research in the monetary and financial realm is still relevant today, Minister Jordan hailed the conference’s longevity and the resilience of the gathering of regional economists.
Over the last decade the conference has explored a plethora of themes including regional and economic integration, economic transformation in a post-independence Caribbean, building financial sector resilience, financial stability, prices preparedness and risk management, financial stability, debt and economic growth, and macro prudential supervision – financial stability and monetary policy.
The sub-themes for this conference will cover areas such as links between financial development and economic growth, financial development and financial stability, increasing global financial integration and financial development, the dimensions of financial development and economic structure and financial stability.
Noting that these have been the areas where policy challenges have greeted regional economies, Minister Jordan explained that the themes will focus on the pressing issues which the region has had to grapple with in its quest for growth and development.
In light of this, he remains hopeful that the recommendations which will emerge will lead to real solutions for these real problems facing the Caribbean.
Weighing in too was the Caribbean Centre for Money and Finance, Officer-in-charge, Dr. Dave Seerattan, who opined that these financial and economic issues are ones which the region has had to grapple with over the last five decades.
And according to Dr. Seerattan, the conference remains one of the most important policy discussions in the Caribbean since it not only addresses the financial and economic stability of the region but impacts policy initiatives as well.

By Ravin Singh