The main responsibilities of the Central Bank includes the formulation and implementation of monetary policy, ensuring the soundness and stability of the banking system, and finally ensuring the integrity and reliability of the payments systems. In all these areas, the actions of the Central Bank have direct implications on the business community and the public at large. The ultimate aim of the policies are to make the economy strong, and to ensure the health of the financial system that is vital to supporting the economic growth and development process. Knowledge of what the Central Bank does and the reasons for its actions are essential for the efficient functioning of the financial markets and the effectiveness of the policy initiatives. In all these areas, the behavior of businesses and consumers at large are important in determining the final outcome. Having the knowledge and understanding of the issues would better equip consumers to manage their financial matters and to make well informed decisions regarding their own finances. In addition, it would also contribute to the soundness of the banking system and the efficiency of the payments system. In this current environment, the issue of financial literacy from these perspectives has become more urgent, particularly in the emerging market economies of Asia, where household consumption is becoming an important driver of growth. The expanding cumulative domestic market in Asia is becoming massive, a factor that has been important in facilitating intra-Asian trade and thus driving the economic integration of the Asian region.
Policy recommendations that are appropriate for some economies are not necessarily suitable for other economies. One salient theme, however, is that fiscal policy space is more limited across the spectrum than it was in the run up to the 2008–2009 financial crisis. Moving from broad policy recommendations to concrete messages on policy implementation is required to draw the policy-makers’ attention and establish a constructive dialogue. The Consolidated Multilateral Surveillance Report is a positive step in that direction. II. The medium-term challenges and the fund’s action plan  Under the current circumstances, the Fund should focus on its short-term policy challenges. Indeed, one of the main issues that the Fund is tackling right now, namely the Triennial Surveillance Review, will be shaped directly by the lessons that the practice and traction of surveillance reveal in the current uncertain environment. Such surveillance practices will be the basis on which to revamp the surveillance framework, for instance, through an integrated surveillance decision that encompasses both its bilateral and multilateral aspects. The Fund’s resource adequacy is, in our view, directly linked to the functioning of Regional Financial Arrangements (RFA) and the existence of bilateral central bank swap lines. It is welcome that major central banks are currently cooperating in this area. A reasonable  2  BIS central bankers’ speeches  question is whether current Fund resources, plus those available through RFAs and bilateral swap lines, are sufficient to deal with a significant major financial dislocation.