Disponible en Español

X Central Banking Operations Meeting

September 2, 3 and 4, 2020

Organizing Institutions

CEMLA and Banco de México.

Content

We will have presentations on central banking operations in advanced economies (AEs) in the context of the COVID-19 crisis, as well as on policy responses to COVID-19 in emerging market economies (EMEs), from a central banking operations perspective. More generally, the current crisis is, in its origins, an extraordinary public health contingency. The economic policy responses have been led by the fiscal authorities. Such policies have not only supported medical responses directly but, in most cases, are designed to facilitate the social isolation measures providing the proper incentives to individuals, corporations and businesses. In tandem, central banks, through their facilities and policies, have been providers of liquidity and have enabled the provision of credit. In this context, there is a plethora of questions and issues to examine. To provide some examples: how can one best assess such policies and facilities? How can one best determine collaterals in a situation of intense systemic stress? To what extent and how should EMEs’ central banks provide support to the long-end of the yield curve? Is the implementation of QE type of policies in EMEs possible or even reasonable? This last question considering that many EMEs have, in a not too distant past, a history of fiscal dominance. Do facilities aimed at easing credit provision to individuals and certain firms have the correct structure of incentives? How can one balance the short-term urgent needs with the potential long-term costs? To what extent have the international swaps lines and repos worked? What have been the main aims of FX interventions in this context?

Objective

The objective of this meeting is to exchange experiences on topical issues related to the rationales, mechanisms, and assessment of central banking market operations in response to the COVID-19 crisis. Additionally, an important topic to discuss is whether international coordination has been effective.

Aimed at

The Meeting is aimed at heads of central banking operations or related areas of CEMLA member central banks.

Coordinators

Dr. Santiago García Verdú
Research Adviser at CEMLA