to the millennium problems. representatives of the financial sector meet in varying constellations for discussions and to make sure that adequate measures sveriges riksbank : finansmarknadsstatistik no. 6 ( sveriges riksbank : financial market statistics no. 6 ). have been taken to avoid problems. already in april 1998, “ the joint year 2000 council ” was established ; 3 its principal task is to ensure coordination between the various actors in the market and to provide a platform for an exchange of information and experience. everybody is working for a common goal – to ensure that the turn of the year passes by in a smooth fashion. up to now, the preparations for the millennium shift has, in all essentials, been working according to plans. however, it is of great importance that this issue continues to have top priority. my opinion is that the financial sector and all interested parties can look ahead to the new millennium with confidence. in conclusion, it is worth recalling that the introduction of the euro at the beginning of this year was able to take place without any serious hitches, even though many systems were being taken into use for the first time. basel committee on banking supervision, the committee on payment and settlement systems, the international organization of securities commissions and the international association of insurance supervisors.

ms hessius discusses the role of the central bank and market liquidity speech given by ms kerstin hessius, deputy governor of the sveriges riksbank, at a seminar of sveriges finansanalytiker forening on 14 september 1999. * * * the financial sector plays a central role in our society ’ s economy. it is this sector that enables us to make payments, to transform savings into investments or future consumption and to spread and minimise potential financial risks. it is therefore essential that the financial sector functions smoothly when we pass from one millennium into the next. many actors share the responsibility of a smooth transition. naturally, the swedish riksbank is one party involved, but everyone – from private savers and investors to public authorities and the media – must bear their part of the responsibility. agents in the financial sector addressed early the potential problems that may arise in connection with the transition to a new millennium. substantial resources have been devoted to measures designed to minimise the risk of any technical problems arising and to ensure that all systems can cope with the transition. the financial supervisory authority has closely monitored work on systems adaptation since 1997. the role of the riksbank in this connection is bound up with our regular tasks as central bank in the economy – to implement monetary policy, to promote a secure and efficient system of payments and to ensure that sufficient notes and coins are available in the economy. my intention today is to concentrate on the central role played by the riksbank in the management of liquidity in the financial system. the risks that are generally given prominence as being the greatest where the millennium period is concerned are the risks of technical malfunctions arising, primarily as a result of problems in adapting all computer systems to the year 2000. such malfunctions have the potential to disrupt the financial infrastructure. irrespective of how high a degree of probability is assigned to these risks, they have to be treated with the utmost seriousness. the very uncertainty about the possibility of problems arising is in itself enough to lead to disturbances ; for this reason, preparations have to do not only with technical adaptations but also to a great extent with instilling confidence that the systems will function in practice. one way to build confidence is to use various types of agreements to attempt to limit the burden on systems around the millennium period, hence reducing the risks. one example of a measure of this kind is that the european central bank, the ecb, has decided that