BACKGROUND

Financial crises including the ongoing COVID-19 pandemic have consistently drawn attention to the need for developing countries to develop their local currency bond markets (LCBM). Deeper and efficient government securities markets, a key segment of LCBMs, play a key role in reducing financial vulnerability to shocks and enabling governments to finance critical economic and fiscal policy measures in response to them. They can also support effective monetary policy and act as an important information source for policymakers. When they are developed, LCBMs become more stable and less risky sources for financing development priorities, an important factor in making debt more sustainable. While governments in Sub- Saharan African economies have regularly promoted and adopted policies to develop their domestic debt markets, most continue to remain relatively underdeveloped compared to peers in other regions. Though broad guidelines and general principles to develop LCBMs are readily available, their translation into specific reforms is a complex process that requires multiple and interdependent policy actions from a broad range of stakeholders. In many cases, a wide spectrum of reforms is required to help develop LCBMs, and often careful consideration is needed to determine optimal sequencing and timing of the policy actions.

As part of its support to member countries’ efforts to develop their domestic debt markets, MEFMI will offer a virtual course on LCBM development. The course is designed to strengthen participants’ knowledge on the building blocks for LCBM development and sequencing of reforms to develop them.

COURSE OBJECTIVES

The main objective of this course is to train officials on the building blocks for local debt market development and the sequencing of policy reforms for developing these markets. The training will also provide a platform for participants to learn from experiences and good practices of peer countries.