The EMU has limited the risks of exchange rate crises and catalyzed the financial integration of the euro area economy •  The euro has put an end to the potential effects of exchange rate crises and favoured the emergence of a stable environment characterized by historically low interest rates. Thanks to these developments, the euro area countries have not been confronted with difficulties stemming from the uncertainties due to recent geopolitical troubles. •  The introduction of the euro has catalyzed the financial integration of the European economy, which is totally complete as regards the money market. In the first weeks following the introduction of the euro, price differences on national interbank money markets decreased very quickly to stand at less than 5 bp. This level corresponds to the spread bid-ask currently observed on the market. •  A comparable movement has occurred on European bond markets, where returns on government yields have converged. •  The euro area, and more broadly the European Union, now have a consistent financial architecture. The implementation of the Financial Services Action Plan defined at the Lisbon European Council is on the way to completion. Subsequently, the Lamfalussy process should provide a new institutional architecture in the fields of financial supervision and regulation and develop flexible and uniform technical rules. Part 2: The euro plays the role of an international currency and a nominal anchor The available data bear out the increase in the international role of the euro.
Ladies and gentleman Investors continue to show heightened confidence in the Zambian economy reflected in stronger performance in foreign direct investment (FDI). For instance, the 2013 Foreign Private Investment and Investor Perceptions Survey report shows that FDI inflows rose to $ billion in 2012 from $ billion in 2011, the highest in the past 12 years. Similarly, FDI stocks increased to US $ billion from $ billion over the same period. Data for the first two quarters of this year already indicate a strong performance in 2013. It is therefore, my expectation that the banking sector will continue to take advantage of opportunities arising from the conducive macroeconomic environment in the country to create wealth and contribute to the country’s development. We view increased private investment such as FCB as a stimulus for job creation, technological and skills transfer, as well as wealth creation. This investment by FCB is important given the fact that deposit-taking corporations (banks) have recently become among the top three sectors in the country with respect to FDI. FDI inflows to banks were $ million, third to manufacturing and mining at $ million and US $ million in 2012, respectively. Consistently, in terms of FDI stocks, banks were in third place with $ million while manufacturing and mining were second and first at $ billion and $ billion in 2012, respectively.