The other question is can these developments affect returns on regional equity or fixed income securities issued and traded in these markets. The First Panel discussion will therefore examine the impact of volatility in capital and credit markets in developed countries on our investment portfolio decisions in the Caribbean.
In addressing this topic we are seeking to determine the transmission mechanisms between the two regions and how vulnerable regional markets are to financial contagion from abroad. It would also be interesting to hear their views not only on asset portfolio diversification but on currency diversification – a trend we have observed – certainly among some central banks world-wide.