Developing policy frameworks for local capital market development: Developing central bank inflation targeting frameworks - Extension

Overview
Project Summary Document

TCRS 1088

Status TC Com approved

Location

Regional

Business Sector

Financial Institutions

Notice Type

Public

PSD Disclosed

04 May 2016

Project Description

The absence of functioning local capital markets, the resulting overreliance on foreign funding and foreign currency (FCY) lending, and the severity of global deleveraging has impeded economic growth and financial stability in many of the EBRD’s countries of operations (CoO). The recent financial crisis has also focused attention on the systemic implications of transferring foreign exchange (FX) risks to unhedged borrowers. One of the key elements of a macroeconomic framework conducive to local currency (LCY) market development is the adoption of inflation targeting as the basis for monetary policy. Central banks with effective analytical and policy tools to promote price stability can help build the credibility needed to induce individuals and companies to conduct transactions in the local currency.

This project provides assistance to central banks in selected EBRD developing countries in switching their focus to an inflation-based nominal anchor, thus making monetary policy more transparent and predictable, and increasing the role of interest rates in monetary policy transmission. Transparent and forward-looking monetary policy, based on a consistent analytical framework, lowers interest rate volatility, and reduces macroeconomic vulnerabilities, thus promoting the use of local currency and encouraging the development of local currency financial markets. Such a monetary policy requires institutional ability to collect, process, and interpret data in a consistent manner to answer relevant policy questions and assess risks. Enhancing the analytical process and linking it with actual decision-making and policy implementation often requires adopting new technologies, organizational changes, and changes in internal and external communication.

The TC is fully aligned with the LC2 strategy, by helping to build capacity to conduct monetary policies supportive of dedollarization and broader use of local currency. TC funds are necessary because these ETC central banks have limited capacity, both managerial and financial, to organize and fund this capacity building from their own resources.

Enquiries

Business opportunities

For business opportunities or procurement, contact the client company.

For business opportunities with EBRD (not related to procurement) contact:

Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

For state-sector projects, visit EBRD Procurement:

Tel: +44 20 7338 6794
Email: procurement@ebrd.com

General enquiries

Specific enquiries can be made using the EBRD Enquiries form.

TCRS 1088

Status TC Com approved

Location

Regional

Business Sector

Financial Institutions

Notice Type

Public

PSD Disclosed

04 May 2016

Project Description

Project Objectives

Development of internal modelling, forecasting, and policy communication capacity at the client central banks.

TC Recipient Information

Central banks of Kyrgyz Republic, Mongolia, and Tajikistan

Project Cost

€ 300,000

Funding Summary

The project is expected to be funded through the EBRD's Shareholders Special Fund

Any competitive selections for business opportunities relating to this project will be published on the EBRD's website: Consultancy Procurement Opportunities.

General enquiries

EBRD project enquiries not related to procurement:
Tel: +44 20 7338 7168
Email: projectenquiries@ebrd.com

Access to Information Policy (AIP)

The AIP sets out how the EBRD discloses information and consults with its stakeholders so as to promote better awareness and understanding of its strategies, policies and operations following its entry into force on 1 January 2020. Please visit the Access to Information Policy page to find out what information is available from the EBRD website.

Specific requests for information can be made using the EBRD Enquiries form

Independent Project Accountability Mechanism (IPAM)

If efforts to address environmental, social or public disclosure concerns with the Client or the Bank are unsuccessful (e.g. through the Client’s Project-level grievance mechanism or through direct engagement with Bank management), individuals and organisations may seek to address their concerns through the EBRD’s Independent Project Accountability Mechanism (IPAM).

IPAM independently reviews Project issues that are believed to have caused (or to be likely to cause) harm. The purpose of the Mechanism is: to support dialogue between Project stakeholders to resolve environmental, social and public disclosure issues; to determine whether the Bank has complied with its Environmental and Social Policy or Project-specific provisions of its Access to Information Policy; and where applicable, to address any existing non-compliance with these policies, while preventing future non-compliance by the Bank.

Please visit the Independent Project Accountability Mechanism webpage to find out more about IPAM and its mandate; how to submit a Request for review; or contact IPAM via email ipam@ebrd.com to get guidance and more information on IPAM and how to submit a request.

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Developing policy frameworks for local capital market development: Developing central bank inflation targeting frameworks - Extension

Project Description

Enquiries

Business opportunities

General enquiries

Project Description

Project Objectives

TC Recipient Information

Project Cost

Funding Summary

General enquiries

Access to Information Policy (AIP)

Independent Project Accountability Mechanism (IPAM)