Caleb M Fundanga: The central bank, the media and the legislature – can they work together? Remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at the 35th anniversary of the Central Bank of Swaziland, Mbabame, 21 May 2009. *  *  *  Governor M.G. Dlamini, Fellow Central Bank Governors, Your Excellencies the Members of the Diplomatic Corps, Distinguished Guests, Ladies and gentlemen, And May I simply Say All Protocol Observed, Mr. Chairman, it is indeed a great pleasure for me to be with you today as we commemorate the 35th Anniversary of the Central Bank of Swaziland. I consider it a great honour and privilege, on behalf of the Bank of Zambia and indeed on my own behalf, to have been invited to give a keynote speech at this historic event. Mr. Chairman, allow me to first of all congratulate the Central Bank of Swaziland, the Government and all other stakeholders for having come a long way in promoting the effective conduct of monetary policy in this great country over the last 35 years. We at the Bank of Zambia have noted the important role that the Central Bank of Swaziland has played not only in the development of the Swazi economy, but in enriching the knowledge of central bankers throughout the region, through its participation in the regional groupings such as the Committee of Central Bank Governor’s in SADC.
Media coverage of monetary policy actions is a central channel of a central bank’s communication with the wider public, and thus an important factor for its credibility and policy effectiveness. The evidence suggests that communication can be an important and powerful part of the central bank's toolkit since it has the ability to move financial markets, to enhance the predictability of monetary policy decisions, and potentially to help achieve central banks' macroeconomic objectives. Unlike the media, the legislature’s oversight over the operations of the central bank is normally enforced by statutory provisions. However, it is equally important for the central bank to proactively engage the two stakeholders in a way that maximises the transmission of accurate information to the market as well as promotes the transparency, accountability and credibility of the central bank. Finally, I thank you all for your attention and would like to reiterate my gratitude, Mr. Chairman, for inviting me to share in your celebrations. I thank you. 4  BIS Review 95/2009