AMCM hosted “Conference of Central Banks and Regulatory Authorities of Portuguese Speaking Territories”

The Monetary Authority of Macao (AMCM) hosted the “Conference of Central Banks and Regulatory Authorities of Portuguese Speaking Territories” on 6 April 2009. The Conference carried the main theme “Establishing a Platform for Financial Cooperation and Promotion of Economic and Commercial Interaction”. 180 delegates from central banks of Angola, Brazil, Cape Verde, Guinea-Bissau, Mozambique, Portugal, São Tomé and Príncipe and Timor-Leste and local and overseas financial institutions attended the Conference. Mr. Ho Hau Wah, Chief Executive, received the representatives of the Central Banks of the Portuguese Speaking Countries and exchanged views on the current financial environment after the Conference. Mr. Francis Tam, Secretary for Economy and Finance, Ms. Gao Yan, Deputy Director of the Liaison Office of the Central People’s Government, Mr. Lu Sumin, Special Envoy, Office of the Commissioner of the Ministry of Foreign Affairs, Consul of Angola in Macao, Ms. Xie Xiaolin, Commercial Attaché of Chinese Embassy in Portugal and Mr. Anselmo Teng, Chairman of AMCM officiated the opening ceremony. In the Conference, AMCM concluded memoranda of understanding with central banks of Mozambique and São Tomé and Príncipe, which was witnessed by Mr. Francis Tam, and representatives of central banks of 8 Portuguese speaking countries. The Conference was conducted in the form of a seminar. Delegates from the invited countries made their speeches, which carried valuable, practicable innovations and suggestions. Upon the completion of the conference, Chief Executive of the Macao SAR, Mr. Ho Hau Wah, received the representatives from the Central Banks of the eight Portuguese Speaking Countries and had fruitful discussions in regard to the latest international financial environment. The Chief Executive also praised the participation of the representatives in the consultation with each other about the establishment of co-operation mechanism in the financial sector within the framework of business and trade between China and Portuguese Speaking Countries. Mr. Manuel Piedade dos Santos Júnior, Director of Central Bank of Angola, first expressed their willingness to conclude a memorandum of understanding with AMCM, which will be materialized shortly with a view to setting up a cooperation mechanism. At the same time, they would enhance exchange of technical aspects via a cooperative relationship in order to strengthen professional function of a central bank. Mr. António Gustavo Matos do Vale, Director of Bank Settlements and Privatization, Central Bank of Brazil confirmed that they had concluded various cooperation agreements and memoranda of understanding with many central banks of Portuguese speaking countries. In addition, they helped training and provided various experiences to its counterparts. Through multi-lateral cooperation networks with central banks of Portuguese speaking countries, China or the MSAR can have access to the comprehensive network through the existing channels with Portuguese speaking countries. Mr. Carlos Augusto de Burgo, Governor of Bank of Cape Verde, said that they were endeavouring to enhance the competitiveness of the banking system of Cape Verde, which included improving supervisory legislations establishing a clearing system and regulating the markets. In addition, they were promoting internationalization of the banking system, amending legislations relating to financial intermediaries, revising foreign exchange regulations and developing its capital market in order to enhance the competitiveness and standard of the financial system of Cape Verde. The move laid down the foundation to converge its financial system with international markets. Mr. João Alage Mamadu Fadia, Deputy Governor of Central Bank of Guinea-Bissau, indicated that in the face of the contagious effect of the financial tsunami, there was a need to restructure global financial system and to stave off the resurgence of protectionism. They advocated strengthening and expanding international economic and commercial cooperation. More attention should be paid to development of under privileged countries. At the same time, there should be more frequent contacts with emerging economic powers, especially China. They fully supported an early establishment of a financial cooperation mechanism under the framework of the Economic and Commercial Cooperation Forum of China and Portuguese Speaking Countries. It would serve as a working platform to facilitate economic and commercial development of all parties. Mr. Victor Pedro Gomes, Board Member of Bank of Mozambique, raised a pragmatic method to attract capital, pinpointing textiles, sugar refining and other resources oriented industries. He also mentioned the infusion of capital in their banking sector by Macao investors. In regard to cooperation in the financial realm, the Bank of China concluded recently cooperation agreements with two commercial banks in Mozambique, which was an important step forward in cooperation. Mr. Vitor Manuel Rodrigues Pessoa was once the Secretary of Economic Co-ordination. He had an indepth understanding of the economic and financial picture of Macao. This time, he attended this conference in the capacity as Board Member of the Bank of Portugal. He gave a detailed account of the causes of the recent financial tsunami and proposed remedies. He also opined that China would play a pivotal role in this respect. Moreover, he envisaged that the MSAR, being a bridge and a service platform, would be fully functional in the enhancement of economic, commercial and financial cooperation between China and Portuguese speaking countries. Mr. Luis Fernando Moreira de Souza, Governor of Central Bank of S. Tomé and Príncipe, introduced the experience acquired by the Central Bank in six areas recently, which included stabilization of macro-economic structure, giving priority in developing an open economy before attempting to establish a regional or international economic linkage, creating attractive conditions to lure outside capital to invest in infrastructural items, stabilizing and balancing supply and demand in the market by applying appropriate taxation, fiscal and monetary policies, improving safety net, seeking policy for sustainable growth. Ms. Nur Aini Djafar Alkatiri, Vice-President of Bank of East Timor and Bank Settlements Authority, called upon commercial banks and insurance companies operating locally and in Portuguese speaking countries to start business and invest in East Timor with a view to developing and expanding the financial system there. It was an emerging nation with great growth potential. Moreover, the nation adopted an proactive attitude in strengthening economic and commercial cooperation between China and Portuguese speaking countries. Ms. Xie Xiaolin, Commercial Attaché of China Embassy in Portugal, pointed out that, apart from the consensus promoted by nations in the Conference, more efforts from the private sector would be indispensable. She indicated that China was very willing to expand economic, commercial and financial cooperation with Portuguese speaking countries via multi-level channels. As a genuine friend of developing countries, China was willing to reinforce cooperation to tide all of us over the difficulties arising from the risks of international financial markets. Promoting financial cooperation would enable further ramification of growth in the mutual economic and commercial relationship. She considered that Macao would be able to provide efficient and quality services when acting as a liaison platform for China and Portuguese speaking countries. Mr. Anselmo Teng, Chairman of Monetary Authority of Macao, elucidated that, to cope with the requirements arising from the development of financial internationalization, particularly cooperation with Portuguese speaking countries, AMCM had concluded various agreements of cooperation with the central banks and insurance supervisory authorities of a number of Portuguese speaking countries. It had concluded memoranda of understanding with 5 out of the 8 Portuguese speaking countries. Similar insurance related documents were signed with insurance supervisory authorities of 5 Portuguese speaking countries. For the rest, negotiation was proceeding smoothly. It was expected that an overall cooperation network can be materialized in the near future. AMCM had called upon a closer tie and cooperation between local financial institutions and their counterparts in Portuguese speaking countries and greater help in promoting the consensus arrived at in this Conference to establish a financial cooperation platform at an earlier date. The local financial sector could adopt a fresh mentality in their operation and actively expand their overseas cooperation and liaison with a view to further enhancing the competitiveness and level of internationalization of local financial industry, which would be conducive to the objective of industrial diversification as envisaged by the MSAR.