XXXV Meeting of South America Central Banks' Governors

The XXXV Meeting of South America Central Bank Governors was held today, with the participation of delegates from Argentina, Bolivia, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay.

The monetary authority representatives in the region analyzed the performance of economy in the world and in each country, in particular. Likewise, they exchanged opinions about the common factors that affect the development of their economies. In addition, two pieces of research were presented: one related to the challenges posted by the inflation targeting scheme, and the other to supervision and interconnection of Payment Systems.

The central banks’ Governors and representatives reached the following conclusions:

- Challenges posted by the inflation targeting scheme: Firstly, it is a must for central banks to improve the effectiveness of monetary policy communication; secondly, they are called to strengthen disclosure procedures; and thirdly, to keep an anchor on inflation expectations against a backdrop of supply shocks and persistent changes in relative prices. Central banks in the region have also learnt from experience that a solid fiscal position and a strong and adequately-regulated financial system take on critical importance.

-Supervision and interconnection of Payment Systems: Participants discussed the main topics related to the integrity, reliability, and security of means of payment. They also exchanged their viewpoints and shared opinions on the significance of these aspects for the financial system in the region and for the whole population. They highlighted the importance of supervision and monitoring of payment systems to ensure proper functioning. They also discussed financial inclusion, innovation and FinTechs’ participation in payment systems.

From left to right: Joaquín Vial Ruiz-Tagle, Antoliano José Cantero Sienra, Hugo Sergio Velarde Vera, Carolina Soto Losada, Gustavo Cañonero, John Arroyo, Julio Velarde, Washington Ribeiro and Paul Castillo Bardalez.

October 29th, 2018