caroline abel : opening remarks - central bank of seychelles'board retreat opening remarks by ms caroline abel, governor of central bank of seychelles, at the central bank of seychelles'board retreat, maha©, 12 october 2024. * * * fellow board directors, consultant from'it's a learning curve'cbs colleagues, good morning. it gives me great pleasure to welcome you all to this year's cbs board retreat. before i proceed further, i would like us to acknowledge one of our own, who unfortunately left us unexpectedly yesterday. graham adeline was a vibrant young man with a promising future in the research and statistics division. he will surely leave a void in the lives of all of us who have known and interacted with him. my heart is heavy, and i would like us to observe a minute of silence to honour his memory. since our last retreat held in november of last year, we have seen some changes in the composition of our board. we bade farewell to three board directors - two having arrived at the end of their tenure, and one following amendments to the cbs act ; i was re - appointed in the post of governor and chairperson of the board ; and we welcomed two new members amongst our ranks, notably second deputy governor mike tirant and board director jean - paul barbier, both formerly members of the cbs team. our deliberations over the next two days will provide a unique opportunity for us to step back from our routine responsibilities, reflect on our strategic direction, and engage in thoughtful discussions that will shape the future of our institution. we find ourselves in a world where uncertainty is not just a phase but a constant. being a forward - looking institution, it is essential that the central bank adopts a long - term view in navigating this evolving environment with a sense of purpose and resilience. managing through uncertainty requires us to anticipate changes, both seen and unforeseen, and prepare to respond swiftly and effectively. our people, our human capital, remain our most valuable asset. we acknowledge the key role that our employees play in upholding the vision and achieving the mission of cbs, ensuring that, as an institution, we maintain a leading role in the economy and the country as a whole. with the move towards implementing a'people function'approach, we're putting each and every individual at the core of what we do and ensuring that we have policies in place that recognise the value that they bring to the organisation

by government debt instrument. the development of indonesian financial market actually took place from the post 1997 / 98 period. the sun market begun in 2002 when banks were started to be allowed to gradually trade their recap bond holding. the development in government bond market then triggered the development of corporate bonds as government bond serve as a risk free benchmark in debt market. however, the transaction in sun market is, so far, dominated by outright transaction. the repo market is not yet active, partly for the reasons as i have previously described, which lead to a perception of bank that undertake repo is in a desperate liquidity need situation, hence will be punished with higher interest rate. the relatively less liquid domestic financial market can be seen from the sun turnover. recently, the daily outright trading volume of sun is just around rp 6. 5 trillion and 300 transaction within the last two years. thus, just around 1 % of sun outstanding. while the repo transaction is much lower, below rp. 1 trillion daily, but not always occurring every day. why we need to further develop indonesia ’ s financial market? from the above description, basically, i have just explained the main reasons, the need to further develop the indonesian financial market. first, to increase the resiliency of domestic financial market, including the banking sector, from possible liquidity shock. second, to increase the efficiency of financial portfolio management and to strengthen liquidity risk management, which in turn it will increase the effectiveness of monetary policy from bank indonesia ’ s perspective. and third, given the increasingly importance of financial market in the economy, it is crucial to have a strong, efficient and healthy financial market to avoid any possible distortion, including from inefficient practice that will add more cost in economic financing. however, the development should be undertaken in gradual manner, and again, should always be linked closely with the need of the real economy. i will now highlight some issues that i believe should be firstly considered as a starting point to develop our domestic financial market. the development of repo market can be considered as a starting point to increase financial market liquidity. this will increase efficient banking liquidity and portfolio management, as well as government financing. in this regard, as financial transaction is mostly in essence a legal contract, thus having a commonly accepted standard repo agreement is a key. in this area, bank indonesia and the government debt management office, has again encouraged market participants to establish a standardized repo agreement