the lessons are even more pertinent as we move towards the new vision of the regional and global banking roles for the future. the continental financial plates have been undergoing an intractable process of geophysical shifts. the fulcrum has migrated from washington to dubai and beijing. it is not just the washington consensus that has collapsed, under the rising tide of globalization. we are now engulfed in a climate change in economic and financial affairs. superseding authority and history, we now have the evidence based test of performance. we now have the call for essential legitimacy, relevance and effectiveness. complaints on the bretton woods institutions are not new. but the difference is that these protests have at last reached the ears and conscience of those running the bretton woods institutions themselves! the charges are manifold but in the midst of the current crises in global finance, the worst charge against any bank is that it has become “ a fire brigade that is too far away. ” emerging economies and developing countries have become so disenchanted with the existing global financial architecture, not least countries in this region, that there is emerging what professor woods has termed “ anger in africa ” towards those ageing financial global dinosaurs. no wonder at it, so locked in the past are they seen to have become, so inflexible and prescriptive, so inept at responding to a changing world. a long engagement as we look at our tasks ahead, we might do so in the light of that common family experience of preparing for the marriage of a daughter or son. joy tempered with realism. so i guess we are in for a rather long engagement in sub - regional banking. this is our seventh encounter and at present we are just about holding hands. the prospect of formal registration and the very act of consummation is, have no fear, yet a long way off. but as george meredith ironically declared : “ kissing don ’ t last : cookery do! ” thus if we are to progress from flirtation to commitment, we must enter the kitchen, roll up our sleeves and encounter the heat, global warming and all! beyond the looking glass for this our 7th meeting here in mauritius we have a clear agenda on important current aspects of monetary and financial matters. at this time when banking has become a rather hot issue of geopolitics, we might wish to heed the grinding of the underlying geopolitical plates. it is, i believe, an opportune moment. let us, then,

and ease of doing business. 32. our monetary policy strategy will continue to be guided by our primary objective of price stability and the promotion of orderly and balanced economic development. central bankers worldwide continue to accumulate evidence that low and stable inflation allows all economic agents to make better decisions on savings and investment ― the key conditions for sustained growth. 33. going forward, we shall continue to ensure that monetary and exchange rate policy is formulated taking into consideration the interests of all stakeholders of the economy. while the fundamentals of the economy seem fairly strong for now, i am particularly concerned about the persistently high current account deficit, which mirrors a worryingly low savings rate. as our main export markets in europe grapple with fairly bleak economic prospects in the foreseeable future, it is vitally important that we do not reduce our structural reform efforts to raise the productive potential of the economy and prepare for the heightened competition which we are likely to encounter on foreign markets as the recovery takes hold. 34. the bank remains ever vigilant to potential risks to financial stability that could hamper our progress to another plane of development. on the regulatory front, we are moving forward with the implementation of basel iii. we shall introduce more stringent conditions, including higher capital requirements, as we step up our endeavours to address the risks posed by domestic - systemically important banks, whose failure might entail widespread consequences for the economy. increasing access to financial services is a key priority for the regulator and i will take all necessary measures to ensure that consumers get a fair deal. the bank is determined to keep a tight rein on bank charges and commissions, in the light of the report of the task force on unfair terms and conditions in banking and related financial contracts, which i mentioned earlier. we concluded a lengthy process of consultation with both domestic banks and international regulatory bodies before finalising draft legislation on the deposit insurance scheme which we submitted to the ministry of finance at the end of last year. we will pursue our efforts to deepen our financial markets. 35. concluding remarks as i look back upon my years helming the bank, i am acutely aware of the weight of responsibility that comes with being called on to ensure financial and macroeconomic stability amid the extraordinary events of the past five years. i wish to thank the prime minister, dr the honourable navinchandra ramgoolam, gcsk, frcp, for having bis central bankers ’ speeches given me this opportunity to serve the nation in this capacity. my