A Panel of Regional Central Bank Governors Held in Bečići

01/10/2022

On the second day of the Summit of Ministers of Finance, Governors and Directors of Tax Administrations, organised by the Serbian Association of Economists, under the auspices of the Ministry of Finance, the CBCG and the Revenue and Customs Administration Montenegro, a panel of central bank governors of countries from the region was held.

In the panel titled “Monetary policy in an inflationary environment”, governors from Montenegro, Albania, Bosnia and Herzegovina, Croatia, North Macedonia and Slovenia discussed, inter alia, the role of central banks in new circumstances, the challenges faced by the financial sector and the scope and limitations of monetary policy measures to mitigate inflation, and ways of preventing risks imposed by the current crisis.

In his opening address, the CBCG Governor, Radoje Žugić, expressed his satisfaction with the reunion of governors from the region’s countries. He stressed that “such gatherings are an opportunity to exchange experiences and views and, discussing the policies we implement in our countries, draw conclusions about the effectiveness of measures, and to come up with solutions for multiple challenges today”. Governor Žugić added that “the next period will require careful monitoring of bank operations and consideration of the need to introduce new prudential measures adapted to the current situation on the micro and macro level” due to the enormous uncertainty and accompanying risks. 

The panel participants agreed in the assessment that central banks must lead preventive and adequately designed policies in the current circumstances. In parallel and in cooperation with fiscal policyholders, they must deal with structural challenges, which will undoubtedly affect financial and macroeconomic stability.

The panel participants concluded that in times of challenges and great uncertainty, such as today, a clear vision, systematic action and strong regional cooperation are needed more than ever. They expressed the expectation that, despite numerous difficulties, the global economy will overcome the crisis and progress toward recovery and prosperity.