Officials Trained on Risk and Reserves Management during COVID-19 Pandemic

Official foreign exchange reserves require prudent management.  However, this has proven to be a challenge, given that the current global investment environment has been plagued by uncertainty due to the COVID-19 pandemic which has become one of the biggest threats to financial markets and the global economy. The pandemic’s evolution and resultant economic impact remain highly uncertain making it difficult for reserve managers to formulate appropriate fund and risk management strategies. With the existing low yield environment, reserves managers have come under pressure to find ways to enhance returns on reserves portfolios. This has highlighted the need for robust risk management strategies because capital preservation remains a key objective for reserves managers amid the pandemic.

In response to the growing pressure for reserves managers to improve returns and strengthen their risk management practices, MEFMI offered an e-Learning course on Risk and Reserves Management during the COVID-19 Pandemic. The course explored the impact of the COVID 19 pandemic on reserves management and risk management processes as well as the interventions taken to mitigate the impact thereof. It also provided a platform to share experiences in official foreign exchange reserves management in the wake of the COVID-19 pandemic.

Twenty (20) central bank officials from five (5) MEFMI member countries, namely Angola, Botswana, Malawi, Mozambique and Namibia participated in the e-Learning course. It is expected that the trained officials will use the acquired knowledge to strengthen risk management in the reserves management departments of their respective institutions. The participants were guided by Mr. Michael Naameh, an international reserves management expert, who was the resource person for the course.

Prepared by Noel Mahombera