The governor of the Bank of Portugal (BdP), Mário Centeno, argued today that the central banks of Portuguese-speaking countries can ‘benefit even more’ from cooperation, which he described as vital at a time of great geopolitical tensions.
‘We can benefit even more from networking and from the differentiated knowledge that resides in each of our institutions,’ Centeno said, according to the Portuguese-language channel of Macau’s public television Teledifusão de Macau (TDM).
Centeno was speaking during the second Conference of Central Bank Governors and Financial Officers between China and Portuguese-speaking Countries, which took place today in Macau.
The economist emphasised ‘the institutional fluidity’ within the framework of Portuguese-speaking central banks, the benefits of a common language and ‘the multiplicity of realities’ in which the various countries operate.
Centeno said that ‘it is precisely the deep and historical connection with Portuguese-speaking countries that has moulded the cooperation’ of the BdP, which has included more than 3,400 initiatives since 1991.
In a span of more than 30 years, the governor highlighted as ‘one of the most emblematic cases (…) for macroeconomic and financial stability’ the Foreign Exchange Cooperation Agreement between Portugal and Cape Verde, signed in 1998.
The agreement led to the establishment of a fixed exchange rate between the Cape Verde escudo and the Portuguese escudo, a link that was maintained when Portugal joined the European currency in 2002.
A BdP study published in 2020 concluded that the agreement allowed Cape Verde to give credibility to its monetary policy and bring inflation close to Eurozone levels.
Centeno emphasised today how international cooperation is ‘so important for strengthening mutual trust between peoples’, especially ‘at a time when we are witnessing significant tensions’ and ‘growing geopolitical fragmentation’.
‘Without co-operation, some policy responses would be impossible. Without co-operation, imbalances inevitably turn into regional tensions with geopolitical implications,’ warned the governor.
The economist also recalled ‘the supranational dimension of the challenges’ that regulators face, giving as examples climate change and the prevention of terrorist financing or money laundering.
During today’s event, the Monetary Authority of Macau signed the first information sharing agreement with the Central Bank of Brazil and signed new agreements with the Bank of Mozambique and the Bank of Cape Verde.
In addition, the Macau Banking Association signed co-operation agreements with the Mozambican Banking Association and the Santomean Banking Association.
Lusa
