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

. therefore, it is essential to establish an effective framework for macroprudential supervision that will ensure both the systematic analysis of risks and the formulation of policies to address such risks. the state of the greek economy the economic slowdown has been less severe in greece than in many other european countries. however, this outcome reflects factors that, if left untreated, will reduce growth potential in the medium term. specifically, the performance of the greek economy during the crisis reflects the relatively - low level of openness and the deterioration of public - sector balance sheets from a position that was already worrisome prior to the onset of the crisis. a factor that has, however, supported the greek economy has been the soundness of its banking system. greek banks have been free of toxic assets and their exposure to the emerging economies of south - eastern europe has remained within manageable limits. a recent stress test conducted in close cooperation with the imf has reaffirmed the soundness of the greek banking system. the relatively - high growth rates experienced by the greek economy since its entry into the euro area reflect a catching - up process. to sustain a robust growth rate in the future, greece will need to address several key challenges, reflected in persistently very large currentaccount imbalances, high fiscal deficits, and worrisome debt levels. these imbalances are the result of structural rigidities, which have undermined competitiveness over time. to restore competitiveness and remove the imbalances, a dual agenda needs to be concurrently implemented : first, a multi - year program of fiscal consolidation, which can reduce risk premia and crowd - in private investment, raising the growth potential of the economy ; second, bold and wide - ranging institutional reforms in the public sector and structural reforms in product and labor markets, which can enhance productivity and raise the employment rate. only by undertaking these reforms will the greek economy be able to become more competitive and increase its growth potential and the prosperity of its citizens. the broad support received by the newly - elected government will greatly facilitate the implementation of the reform agenda.