  Liquidity management tools: To further enhance liquidity management in the banking system, the Bank has instituted several reforms to introduce new instruments like horizontal repo, vertical repo with fixed tenors.   Financial development: In general an efficient and developed financial system is important to collect and collate savings from micro-savers to investors.
Second, an effective monetary policy will depend on an efficient and developed financial system. In concluding my remarks, let me emphasize that employment is a function of economic activity. Sustained economic growth is good for employment. One major solution for sustained growth is a wider market for trade and investment. EAC provides just that.