In Asia, at the national level, we see a region-wide move toward a more flexible exchange rate regime, with a disciplined framework in the conduct of monetary and fiscal policies. As for the financial sector, after the initial restructuring and consolidation, the framework of policy has moved towards risk-based supervision, to an adherence to international standards, and to the undertakings of formal financial sector assessments either under FSAP or within the country’s own financial stability evaluation framework. At the international level, the IMF has also come up with many new and important initiatives. As for the financial sector, its financial surveillance process has been deepened with the introduction of FSAP and the surveillance of international capital markets under the Financial Stability Forum, and the publication of the Global Financial Stability Report. More importantly, the recent initiatives on the new direction of financial sector surveillance is another important step in understanding the linkages between macroeconomic stability and financial vulnerabilities. The new direction aims to integrate financial sector analysis and issues with the Article IV process, and then to link the bilateral surveillance with multilateral surveillance. In our view, this is an ambitious undertaking, but is a move in the right direction. BIS Review 95/2006  1  The challenge, as we see it, will come from the implementation process, especially on the issue of what should be the adequate scope in terms of issues to be covered, choice of countries, and the analytical approach to be used.

Caleb M Fundanga: Small-scale cross-border trade and payment services in southern Africa Official opening remarks by Dr Caleb M Fundanga, Governor of the Bank of Zambia, at a roundtable symposium on small-scale cross-border trade and payment services in southern Africa, Lusaka, 21 March 2011. *  *  *  Distinguished Invited Guests Let me begin by welcoming you to this Roundtable Symposium on Small-Scale CrossBorder Trade and Payment Services in Southern Africa. May I also warmly welcome our colleagues from neighbouring countries who have come to join us in this important event. It is my sincere hope that you shall enjoy your stay in Zambia and that you shall find this roundtable symposium fruitful. Distinguished Ladies and Gentlemen, cross-border trade plays an important role in supporting livelihoods, especially those of border communities, thereby buttressing prosperity in the region. Furthermore, by strengthening commercial ties, promoting cultural understanding, and deepening community relationships, cross-border trade helps to nurture harmonious relations amongst countries in the region. The unique feature of small-scale cross-border trade lies in geographical proximity which minimises transportation costs, thereby allowing traders to take advantage of differences in the supply, demand, and prices of various goods and services available on either side of the border. It is worth noting that most cross-border trade activities are not reported in foreign trade statistics. However, surveys conducted on the subject show that cross-border trade is carried out by individuals or small traders and their families.