Two policy packages announced in December 2010, an increase in reserve requirement in foreign currency and reinstatement of the limit of daily short term foreign debt position, fall into the category of macroprudential instruments directed to manage capital flow. In the midst of capital inflows, such increase in reserve requirement in foreign currency will strengthen banking liquidity management.
Indeed the issues to be discussed at this conference on regional regulatory trends, corporate governance, anti-money laundering, combatting the financing of terrorism and fraud are close to the hearts of governments across the East African region. It is also very apt that the focus is East Africa.