The Financial Stability Board (FSB) Regional Consultative Group (RCG) for Sub-Saharan Africa held a virtual meeting today to discuss recent global and regional macroeconomic and financial market developments and their implications for financial stability.
Members considered the lessons learned so far from the COVID-19 pandemic for their jurisdictions and policy challenges stemming from the recent crisis, including trade-offs between keeping in place measures to support the financing of the real economy and
preserving policy space.
The response to COVID-19 should be based on scientific evidence and the supply of vaccines should consider the needs of developing countries. Members also reviewed vulnerabilities related to foreign currency funding, as illustrated by the external funding pressures experienced by emerging market economies during the March 2020 market stress.
Members discussed potential longer-term effects of the COVID-19 pandemic, including debt overhang and corporate viability issues, and their possible impact on the financial system’s resilience and ability to support economic growth.
The Group received an update on the FSB’s work programme for 2022, and discussed areas of the workplan of importance for Sub-Saharan Africa, such as the work on climate risks and on cross-border payments.