Financial Markets Department
Financial Markets department drives its mandate from CBS act secondary objective of:
a) To implement the foreign exchange policy;
b) To hold and manage the foreign exchange reserves of Somalia;
.
Mission
The mission is to wisely and proficiently manage foreign exchange reserves, as well as issue and manage Government domestic debt securities.
Mandate
The principal purpose of the Financial Market department is to implement the monetary policy of the Central Bank of Somalia through Open Market Operations, manage official foreign exchange reserves and exchange rates, act as a fiscal agent of the Government of Federal Republic of Somalia by contracting and managing the Government’s domestic debt through issuance and redemption of Treasury Securities and to establish Securities Market trading platform and enhance secondary market activities.
Monetary policy consists of decisions and actions taken by the Central Bank to ensure that the supply of money in the economy is consistent with growth and price objectives set by the government. The objective of monetary policy is to maintain price stability in the economy. Price stability refers to maintenance of a low and stable inflation.
The Department consists of four (4) Divisions namely; Reserves Management, Market operations, Debt Management and foreign Accounts.
- To Maintain and manage the foreign exchange reserves at adequate levels.
- To provide analytical support to reserves management function in order to meet the objectives of holding of reserves.
- To prepare and monitor strategies for FX portfolio management.
- To monitor the risk exposure of reserves against set risk parameters in line with the Bank risk tolerance.
- To coordinate all trading and other related activities on the trading floor and provide support to broking and dealing clients.
- To undertake securities’ auctions to support monetary policy operations.
- To help in developing local money and capital markets and initiate market development ideas
- To carry out agency functions of the Bank as issuer and manager of domestic Government debt securities and provide advice on debt management
- Participating in the formulation of debt management strategies
- Undertaking Debt sustainability analysis.
- Ensure payment of matured domestic and external debts(CBS+Government)
- Delivery of external banking services to Government.
- Performing an accounting function for all Governments departments and special project transactions.
- Nostro Reconciliations.
Financial Markets Department Structure
