mandate, including considerations on a new short - term liquidity instrument and a new non - financial policy cooperation instrument ”, and i understand that this work is receiving attention at the highest level in the imf. an improvement in the imf policy toolkit and financing instruments would assist in closing the gaps in the financial system and, in so doing, assist with improving the resilience of economies to exogenous shocks. the imf and regional institutions in africa should further explore ways to improve access for african countries to the gfsn beyond what is available at multilateral financial institutions. the importance of regional financing arrangements ( rfas ) remains key to strengthening the gfsn, and they provide multilateral insurance properties of a different nature to the safety net. however, there is a need for african countries to work together with the imf in developing rfa facilities in the region. 6. conclusion in conclusion, the new global cycle, partly characterised by normalisation in the global financial markets after a prolonged period of a low interest rate environment and reforms in the banking sector, harbours both challenges and opportunities for emerging market economies. the interconnectedness and interdependencies of our economies makes international cooperation indispensable, and the rhetoric around trade protectionism and pushback against multilateralism is occurring at a time when we can least afford it. however, any success in international cooperation will only be achieved if it is built on maintaining macroeconomic policy discipline and strengthening the depth and regulation of financial markets at individual county level. thank you for your attention. page 7 of 8 page 8 of 8

it wrong. and yet, we may perhaps have learnt the lesson too well, and focussed too much on demand management and smoothing economic fluctuations. today, there is little policy space left to boost demand, and it is surprisingly hard even to specify where we are in the business cycle. we should take this as an invitation to shift our focus. the greater problem is not getting the these are 2014 averages from the imf. 2015 is china 3 %, us 1. 6 %, ea 1. 2 %, uk 1. 9 %. 2016 is china 3 %, us 1. 8 %, ea 1. 3 %, uk 1. 9 %. bis central bankers ’ speeches output gap to zero, it is raising the economy ’ s growth rate. we used to think potential growth was close to 4 %, and more with brave reforms. the imf suggests it is about 2 to 2. 5 % and we fall short of that. we need to reorient households, firms and investors on longer - term targets, and to be clear about the policy settings needed to achieve them. the contribution from monetary policy is threefold : first, sensible and sustainable monetary policies ( as well as fiscal policies ) support the availability of capital for growth in south africa, which is crucial to ameliorate our chronic lack of savings. global financing conditions have remained benign since 2010, but as part of normalisation we should expect rising global yields ratcheting up our own borrowing costs. it is important that we seek to minimise this where possible. the more money we spend on schools and roads, and the less on paying interest, the better. it is also important that we avoid taking an overly - mechanical or short - term view of the impact of rising rates. ultra - low world rates were the right policy response to a global economic catastrophe ; rising rates are a sign of a healthier world economy, which will help to realign investment decisions around long - term growth prospects. second, we need the exchange rate to play its part as a dependable buffer for the real economy in the face of international financial and economic shocks. with our terms of trade easing, a large current account deficit, and the global recovery firming up only incrementally, currency depreciation helps improve the balance of payments in a market - friendly way, sending the right incentives to exporters, importers and import - competing industries. macroeconomic adjustment should and needs to occur in the direction of