been made. most of our active members have been meeting a number of the macroeconomic convergence targets, as we continue harmonization and co - ordination of macroeconomic and monetary policies. we recently embarked on stage iii ( year 2009 – 2012 ) of the programme, whose successful implementation and assessment of macroeconomic performance will form a basis for the establishment of a continent wide common central bank. in addition hon. minister, the assembly of governors are working on a common strategy with regard to the establishment of the african central bank ( acb ) as well as advising on the formation of both the african investment bank ( aib ) and the african monetary fund ( amf ). the realization of these institutions will bring us closer to a continent wide monetary union. hon. minister and fellow governors, benefits of integration have been evident across the globe, including securing access to larger markets, enhancing trade flows and in the process attracting the much needed foreign direct investments, lowering trade costs among neighbours, leveraging or locking in domestic reforms, increasing bargaining power and political cohesion among others. notwithstanding these benefits, regional groupings in africa have tended to give less emphasis to monetary integration. under the amcp, the eastern africa sub - region central banks evaluate each other annually to ensure convergence in policies as we pursue further monetary integration. this meeting, hon. minister, will therefore consider the progress on the implementation of the african monetary co - operation programme ( amcp ) by the eastern africa sub - region countries in 2009 ; consider macroeconomic performance against the amcp targets and the status of execution of the decisions of the 8th meeting of governors of the sub - region held in moroni, comoros. my fellow central bank governors, ladies and gentlemen, with these few remarks it is now my humble duty to invite the hon. deputy prime minister and minister for finance to address and officially open this meeting. welcome hon. minister.

export - led growth model, hence the need to look for new markets just as emerging markets have done to move away from traditional market enclaves. bis central bankers ’ speeches the policy issue is then the determination of the appropriate role of exchange rate policy, with a view to facilitating an appropriate structural adjustment process that promotes long - run and sustainable growth. the theme of today ’ s seminar is timely as kenya ’ s economy readies for take - off. policymakers need to find a flight path through the lingering risks. ladies and gentlemen, several papers that link monetary policy actions and the exchange rate policy have been lined up for presentation today. these include research that looks into factors that explain exchange rate movements, the extent of real exchange rate misalignment and the relationship between the real exchange rate and exports. we will also get presentations on papers that develop indices that can serve as an early warning system for currency and macro - economic crises. 4 as kenya aspires to be the regional financial hub ; and is indeed currently regarded as so, one of the pillars for maintaining this regional leadership is also being on the frontier of research information for the financial sector. a well known fact is that a financial boom can trigger an overvaluation of a currency if adjustments do not take place over time. the kenya school of monetary studies is well placed to provide this leadership and it is challenged to do so. therefore, these types of seminars should be the norm on an annual basis. but filtering policy conclusions that can be used for policy direction remain the most important objective. as i conclude, i thank the participants present, including those that have travelled from far for this seminar. i hope the handful of issues addressed in the contributions today will provide the basis for a rewarding discussion. once gain – you are all very welcome! it is my pleasure to declare this workshop officially opened. thank you. bis central bankers ’ speeches