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Financial Markets Division

The Financial Markets Division (FMD) is responsible for the implementation of the Central Bank’s monetary policy and the management of the country’s foreign exchange reserves, as well as the issuance and management of government securities on behalf of the Government. It has as its main objective the development of the financial markets to ensure well-functioning and efficient money and foreign exchange markets.

FMD executes front office functions, undertakes financial market transactions on behalf of the Bank. The middle office functions that were previously under the administration of FMD has been transferred to the Risk Management Unit and the back office functions form part of the Banking Services Division.

The three sections of FMD are:

1. Money and Securities Market Section

This section is mainly responsible for the conduct of the Bank’s open market operations in both local and foreign currencies, to ensure the operational targets are met and the running of the government securities auctions. It also carries out operations related to the Bank’s standing and emergency facilities. Moreover, it monitors developments in the domestic money market and make recommendations for monetary policy actions to the Market Operations Committee (MOC).

2. Reserve Management Section

The Reserve Management section handles the day-to-day management of the foreign exchange reserves in compliance with the Board’s approved Investment Policy and the Investment Guidelines set by the Investment Committee (IC). The section makes recommendations to IC with regard to investment strategies and executes investment decisions on behalf of the Bank.

3. Market Analysis and Forecasting Section

The core responsibilities of this section are to undertake market research and analysis in the domestic money market and reserves management field, maintain the liquidity forecasting framework, as well as set appropriate benchmarks or design strategies to ensure the objectives are met.