The Financial Markets Division has the objective to ensure that the financial system is developed efficiently through a well-functioning money market, foreign exchange market and secondary market for government securities. In addition to this prime objective, this new setup is also being contemplated to provide for proper segmentation of processes of financial nature, namely in providing for a front office, middle office and back office configuration that will further improve the risk management aspect of financial transactions. To deliver this mandate the division will be divided into three sections and this will be separated into the Front Office and Middle Office:
Front Office
· Market Operations
· Market Analysis
Middle Office
· Compliance and Risk
The Back Office function will be part of the Banking Services Division
The objectives and activities of these sections will be as follows:
Market Operations Section
The Market Operations Section will be divided into three units:
1. Reserve Management unit will be handling the day-to-day management of Central Bank’s reserves. This entails the following:
a) Ensuring that there are adequate foreign exchange reserves available to make international payments and support the monetary policy;
b) Liquidity, market, and credit risks are controlled in a prudent manner to achieve the safety and liquidity of the reserves;
c) Subject to safety, liquidity and other risk constraints, reasonable earnings are generated over the medium to long-term on the funds invested;
d) Earnings generated on the invested reserves shall be treated in accordance with the CBS Act and reserve management policies;
e) Prepare the Reserve Management activity report for presentation to Investment Committee (IC).
2. Money Market unit will be handling the day-to-day operations of the Central Bank with regards to interventions in both local and foreign currencies. This entails the following:
