management matters, but you will also be required to play a catalytic role in the whole risk management process. as the proverbial saying goes, the buck for managing the risks in your respective departments stops at you! the risk management department ’ s role will remain confined to the coordination and facilitation of the bank - wide risk management activities. in conclusion, i wish to urge you all to take a keen interest in the deliberations of this workshop. as officers at the frontline of risk management in the bank, you are expected to be conversant with the risk management process that is being implemented at the bank, and there is no better platform to provide that opportunity than now! to this end, the programme of that this workshop is organized in such a way as to be highly interactive. therefore, i urge you to feel free to ask as many questions as possible. with these few words, it is now my singular honor and privilege to declare this workshop officially open. i thank you.

##so is part of this process of global parity re - accommodation. our currency has appreciated significantly with respect to that of deficit - ridden economies : the us, the uk and, to a lesser extent, the eurozone. however, it remains stable or has depreciated with respect to the currencies of other emerging or commodity exporting economies ( figure 2 ). one problem is that not every country is contributing to the foreign exchange adjustment at the same pace. such a disparity creates tensions in the world economy. in the eurozone, the rigidity imposed by the single currency slows down the real exchange rate adjustment between economies that are going through very different stages in the cycle. in china, high savings and foreign exchange market interventions hinder the adjustment. this can amplify the effects on other currencies in emerging and commodity exporting economies. however, underlying pressures continue to manifest themselves in other ways. in the deficit economies of the eurozone, the recession and its accompanying deflationary pressures depreciate the real exchange rate. in emerging asia, the acceleration of spending and increased inflationary pressures appreciate the real exchange rate. eventually, the foreign exchange regime affects the real exchange rate ’ s behavior only temporarily, and the adjustment arrives sooner or later by other ways, some times at a greater cost. improved terms of trade another factor influencing the exchange rate ’ s behavior has been the improvement of our terms of trade. along the past ten years, the ratio between the price of our exports and imports, i. e., the terms of trade, has almost doubled. as of the third quarter of 2010, the terms of trade exceeded the average for the last two decades by more than 60 %. underlying this increment are the higher prices of copper, iron, wood pulp and other commodities relative to manufactured goods, partly attenuated by the oil price increases ( figure 3 ). improved of trade lead to an increase in the real national income – the sum of wages, profits and taxes – faster than the expansion of our productive capacity. to the extent that this higher national income is perceived as permanent by policy - makers and private agents, it stimulates expenditure and puts pressure on the installed capacity, the domestic interest rate and, ultimately, the real exchange rate. in the case of fiscal earnings, for over twenty years our country has implemented a responsible, prudential fiscal policy, generating fiscal surpluses for most of the period. such a policy