njuguna ndung ’ u : cooperation between the bank of south sudan and the central bank of kenya remarks by prof njuguna ndung ’ u, governor of the central bank of kenya, at the 3rd governors consultative forum on “ cooperation between the bank of south sudan and the central bank of kenya ”, kenya school of monetary studies, nairobi, 19 december 2012. * * * mr. kornelio koriom mayik, governor, bank of south sudan ; members of the technical committee, bank of south sudan and central bank of kenya ; the central bank of kenya is delighted and honoured to host the 3rd consultative forum on cooperation between bank of south sudan and central bank of kenya here at the kenya school of monetary school studies. i take this opportunity to welcome the governor, bank of south sudan, h. e. kornelio koriom mayik, and the entire bss delegation to nairobi, kenya and more specifically to the kenya school of monetary studies ( ksms ). the genesis of the cooperation between bss and cbk goes back a few years ago before south sudan became a republic when a number of officials were hosted here at ksms and the first governor of bss operated for a while from an office at cbk. to date we have had two other consultative forums at bank of south sudan in juba ; the 1st one being in july 2012 and the 2nd in october 2012. the purpose of these forums is to strengthen the mutual cooperation between the two institutions and to seek solutions to common binding constraints. during the 1st consultative forum, bss outlined the challenges the bank was facing, including ; • the capacity constraints in conventional banking operations ; • facilitating government borrowing from the domestic market and putting in place the necessary infrastructure ; • the need to put in place a framework and appropriate instruments for monetary policy implementation ; • the adverse impact of stoppage of oil revenues that led to reduced foreign currency revenues ; and, • the need to establish a functioning capital market the cbk on its part identified a number of areas that it could provide support. this, combined with the challenges highlighted by bss formed the basis for mutual cooperation between the two central banks. during the 2nd consultative forum which was held in october 2012, we agreed to form a technical committee ( tc ) to fast - track the implementation of issues discussed during the 1st consultative forum. the terms of reference of the technical committee were drawn up and agreed upon. among the tasks given to this tc include ;

, we should also contribute to the formulation of effective measures for responding as necessary, in close consultation with the government and the supervisory authorities. we must maintain our robust external soundness as well. we will need to closely monitor developments in terms of factors causing global financial market unease that could lead to expanded exchange rate or capital flow volatility. if the financial and foreign exchange markets become unstable, then market stabilization measures appropriate to the circumstances should be carried out in a timely manner. we will in addition need to work to strengthen the multi - level financial safety nets, through financial cooperation with international organizations and regional cooperative bodies. as the convergence of it and finance accelerates, the environment for our payment and settlement - related work is changing rapidly, and in view of this we should continue to expand and improve the related infrastructures and services. we will also need to carry out in - depth research on the implications that the establishment of internet - only banks, and the extensive use of digital currencies, have had on conditions for monetary policy operation and the payment and settlement system. dear fellow members of the bank of korea, in times of high uncertainties like those now facing us, it will inevitably be difficult for the central bank to accurately analyze economic conditions and carry out an optimal monetary policy based upon this analysis. no matter what the circumstances, however, we need to faithfully fulfill the mandate bestowed upon us. only by doing so can we contribute to sound economic development and gain even greater public trust. to this end, all members of our bank ’ s staff should work to strengthen their expertise, by striving to develop themselves and to fully exercise their potentials. we must also open our minds and listen to diverse voices directed at the central bank, such as outside requests and opinions of economic experts at home and abroad, without being shackled by our existing knowledge and experience. we should continue working to increase the transparency and predictability of our policies, so that economic agents are able to enhance their understandings of our monetary policy and form rational expectations as to our policy directions. the more a society advances, the higher the level of morality and social responsibility demanded of those in the public sector. and central bankers are of course no exception. we must therefore 2 / 3 bis central bankers'speeches work to bring our ways of thinking and our code of conduct into step with the new values and norms arising with the changes of the times. not only as members of this organization, but in our own everyday lives