of the nato base. currency inflows and outflows were in fairly good balance during the last months of 2003 and the exchange rate settled down. towards the end of the year the krona began strengthening again, until mid - january. the main explanation for this appreciation is probably inflows of borrowed funds in connection with a series of business mergers and takeovers. changes in the exchange rate of the krona need to be examined in the context of the slide of the us dollar against the euro. one consequence has been that the exchange rate of the krona against the euro is roughly the same now as it was two years ago, while the dollar has weakened against the krona by one - third over the same period. by law, one of the tasks of the central bank of iceland is to maintain foreign exchange reserves in accordance with its objectives and role. at the end of 2001 the foreign reserves were largely sustained with foreign borrowing by the central bank, which left the external position unacceptably low on a long - term view. the reason was that under the fixed exchange rate regime, the central bank frequently intervened in the fx market in 2000 and 2001 by selling foreign currency in an effort to stem the slide of the krona. in 2002 the central bank began building up its foreign reserves again, purchasing foreign currency for the equivalent of 4. 5 b. kr. last year the bank stepped up these purchases to the equivalent of 43. 2 b. kr. nonetheless, the bank ’ s purchases only amounted to 3. 6 % of total turnover in the fx market during the year. by mid - 2003 the central bank had repaid its foreign short - term borrowing in full and at the end of the year the foreign reserves amounted to more than 58 b. kr. this year the bank has continued to purchase currency in the market, but on a smaller scale than in 2003. it thereby aims to strengthen its foreign reserves even more this year. ample foreign reserves are an obvious prudential measure and one of the factors that international ratings agencies consider when evaluating the creditworthiness of iceland ’ s sovereign and corporate debt. however, a high level of reserves does leave the central bank ’ s operations much more exposed to changes in the exchange rate, as reflected in the minor operating loss reported for last year, which was described earlier at this meeting. financial stability the central bank is obliged by law to promote price stability and also an efficient and safe financial system, including payment

njuguna ndung ’ u : financial sector contributions towards vision 2030 goals keynote address by professor njuguna ndung ’ u, governor of the central bank of kenya, at the aon kenya insurance brokers seminar on “ financial sector contributions towards vision 2030 goals ” nairobi, 20 november 2014. * * * mr. joseph onsando, chief executive officer, aon sub - saharan africa ; directors and management of aon kenya insurance brokers limited here present ; distinguished participants ; ladies and gentlemen ; it gives me great pleasure to be part of this important seminar themed “ financial sector contribution towards vision 2030 goals ”. before i make my remarks, let me take this opportunity to thank aon kenya insurance brokers limited, for organising this important seminar to highlight the achievements of the financial sector under kenya ’ s long term development blueprint, vision 2030. this seminar provides an excellent platform to examine our successes, challenges and map the way forward to increase the financial sector ’ s contribution to kenya ’ s economic development. as you are aware, the financial sector, the world over, plays a vital role in the socio - economic development process of a nation. in recent years, there has been increasing evidence showing that financial sector development is important not only for economic growth and development, but also for poverty reduction. inclusive finance is good for sustainable inclusive growth. the financial sector intermediates between savers and borrowers by providing a wide range of financial services essential for productive economic activities. the financial sector also offers a wide range of products for risk mitigation, whose absence would impede entrepreneurship. the financial sector therefore allows for mobilization and allocation of financial resources for investment and wealth creation. the development of a welldiversified and accessible financial sector is imperative to meet the varied financial needs within the economy. ladies and gentlemen : the anchor vision 2030 is to transform kenya into an industrialized middle - income country that provides high quality of life to its citizenry. vision 2030 defines the financial sector as vibrant and globally competitive that will promote high level of savings to finance kenya ’ s investment needs. the key objectives for the financial sector in vision 2030 are to enhance financial stability, efficient transformation and accessibility to all kenyans. ladies and gentlemen : the long - term policy objectives of the financial sector in vision 2030 include : i. improved access and deepening of financial services and products for a much larger number of kenyan households and small businesses ; ii. mobilis