The 39th meeting of the South Pacific Central Bank Governors took place on 28-29 November 2024 in Nadi, Fiji, bringing together the Governors and senior representatives of the Reserve Bank of Australia, Reserve Bank of Fiji, Reserve Bank of New Zealand, Bank of Papua New Guinea, Central Bank of Samoa, Central Bank of Solomon Islands, ³Ô¹ÏÍøÕ¾ Reserve Bank of Tonga, and the Reserve Bank of Vanuatu. The meeting was hosted and chaired by Governor Ariff Ali of the Reserve Bank of Fiji.
The agenda focused on four critical themes: The Future of Central Banking, Greening the Financial System, Central Bank Resilience, and Correspondent Banking & ³Ô¹ÏÍøÕ¾ Payment Systems. Participants engaged in meaningful discussions on the evolving roles of central banks, emphasising their traditional mandates of price, financial, and external stability while addressing contemporary challenges such as climate change, poverty alleviation and financial inclusion.
In her keynote address, Governor Caroline Abel of the Central Bank of Seychelles underscored the necessity for central banks to safeguard their operational independence, which is critical during times of crisis. She emphasised the importance of a strong governance structure, stating that central banks are a beacon of stability and must focus on placing people at the centre of their institutions. Governor Abel urged future central bankers to prioritise transparency, consider climate change in policy formulation and develop a robust digital economy agenda while remaining adaptable to changes in human capacity and technology.
The meeting also discussed the critical role of remittances and the challenges arising from the withdrawal of correspondent banking relationships in the Pacific. Experts from the World Bank and the Pacific Islands Forum Secretariat provided updates on regional initiatives, encouraging central banks to embrace innovation and enhance cooperation among all stakeholders. The Governors shared valuable insights on modernising national payment systems to foster economic growth and resilience in the face of increasing cyber threats.
Discussions also focused on enhancing central bank resilience in a world increasingly prone to shocks. Deputy Director at Bank Negara Malaysia, Mr Kanagalingam Amirthalingam, highlighted the complexity and dynamism of the central banks’ risk landscape, stressing that a robust internal governance system and sound planning are essential for building resilience and maintaining efficient operations amid constant change and challenges.
A key takeaway from the meeting was the urgent need to align financial systems with sustainability goals. Dr Eliki Boletawa from the Alliance of Financial Inclusion and Dr Katerina Syngellakis from the Global Green Growth Institute shared their collaborative experiences and outlined a pathway forward on Inclusive Green Finance work among our central banks. Initiatives such as the issuance of green and blue bonds, inclusive green finance, digital financial services, parametric insurance and the greening of the Pacific financial system were discussed as critical in enhancing climate resilience. Continued strong collaboration between central banks, Governments, and development partners was emphasised to bridge capacity gaps in green finance.
In closing, Governor Ali remarked, “This meeting has provided a valuable platform for central bank governors to collaborate on pressing issues and share innovative solutions. We look forward to the next gathering, which will be hosted by the Reserve Bank of New Zealand in 2025.”
RESERVE BANK OF FIJI
