to exchange coins for notes ; • promote the habit and culture of using coins in day to day transactions ; • but also encourage a cost - effective circulation of coins. ladies and gentlemen : as you are aware, coins constitute low - value units of our currency structure and adequate availability at all times everywhere cannot be over - emphasized. most of you must have witnessed situations at points of sale ( pos ) and retail outlets where token items such as sweets or matchboxes are offered in place of coin - change. this is a practice that we would like to see stopped. coins should be readily available in all retail outlets to bis central bankers ’ speeches ensure proper pricing and avoid undue retail price hikes or issuance of token items in lieu of coins. the central bank through the commercial banks has continued to ensure that adequate quantities of coins are in circulation. as of today, the central bank of kenya has issued into circulation over 1. 31 billion pieces of coins in various denominations with an estimated face value of ksh. 5. 1 billion. we believe these coins are more than adequate to serve the economy. in the month of october 2012 alone, cbk released 9 million pieces of coins into circulation, while in november 2012, a further 12 million pieces have so far been released, yet the challenges on coin circulation still persist in some segments of the market. it must be that it is the circulation problem in the country. we believe that the bulk of coins are held by members of the public either in their homes, offices or car pouches or is it becoming expensive to make trips to the bank for coins? this trend seems to be continuing and we need to find a mechanism to end or discourage it. it is therefore clear that the problem of inadequacy of coins in circulation cannot be addressed by adding new coins but by ensuring that there is an efficient mechanism for recirculating existing coins within the economy. the 2012 national coin week has therefore been appropriately dubbed “ chomoa coins ” and involves a variety of media activities which have been mooted by the central bank, kba, supermarkets and the other key stakeholders. besides educating the public on the importance of coins, the key campaign aims at : • encouraging the general public to utilize coins in making low value payments ; • calling upon everyone keeping coins in homes, offices, cars etc. to instead circulate them by dropping them at designated change points in supermarkets and banks ; • informing the general public and traders in particular that

to shift part of their activities outside the regulatory realm. it is therefore decisive that we continue our work to improve our capacity to identify and assess the potential risks stemming from the shadow banking system. this includes regulatory reform of money market funds, securitisation and the interaction with the banking sector. the second challenge is how to keep pace with financial innovation. improving the otc and commodity derivatives markets is a key part of this agenda, it is a complex matter and one in which alignment of details is essential to avoid regulatory arbitrage. bis central bankers ’ speeches the third challenge is to enhance transparency across the board : with regards to markets, institutions, and products. insufficient information contributes to mispricing of risks, mistrust among market participants, which can result into downturns and crises. at our october meeting of g20 finance ministers and central banks governors we will be discussing iosco “ recommendations to promote markets ’ integrity and efficiency to mitigate the risks posed to the financial system by the latest technological developments ”. 2. improving policy discipline globally aside from a more resilient global financial system, we need to have more disciplined macro policies as the lack of discipline in macroeconomic policies in several countries led to the build - up of unsustainable external imbalances before the financial crisis. there is still a gap between the degree of economic integration and the willingness of policy makers to take into account interdependence and spillovers. keeping one ’ s house in order is no longer sufficient in an integrated world. spillovers from the rest of the world can influence economies considerably. multilateral surveillance is now being enhanced along two tracks. the informal g20 track and the formal imf track. the g20 framework for strong, sustainable and balanced growth, incorporates a first systematic multilateral assessment of global imbalances. it comes at an appropriate time because four years after the crisis, global imbalances remain unsustainably high. the sum of the current account balance ( in absolute terms ) of the major economies are projected to remain close to 2. 5 % of world gdp in the next few years. this is less than their pre - crisis peak ( over 3 % of world gdp ), but still twice as high as in the early 1990s, before the acceleration in financial and real globalization. it is now of foremost importance to implement the framework effectively, and to fully live up to the expectations that the g20 process raised internationally. the g20 cannes summit