As part of a program funded by the UK government, Bank of England employees share the UK's expertise in forecasting, managing and alleviating the economic and financial shock caused by the pandemic.
Given the diverse effects of the corona virus worldwide, the Bank of England has tailored its approach to the specific challenges of each country. For example, collaboration with the South African Reserve Bank and the 15 central banks in the South African development community has focused on developing a crisis management framework to respond to commercial banks at risk from adverse economic impacts.
Bank of England experts have assisted other central banks, including those in Sierra Leone and Ghana, with internal risk management, risk assessment for the banking sector and the development of foreign exchange markets, which would help reduce the risk of a sharp rise in import prices and one Inflation spiral including reduce food.
International Development Minister Anne-Marie Trevelyan said: “The global economic impact of the corona virus has shown us that financial stability here in the UK depends on other countries with stable economies. This innovative partnership with the Bank of England leverages UK expertise to protect British businesses and consumers, and to help developing countries build better and become more self-sufficient. "
Andy Haldane, chief economist at the Bank of England, said: “In these turbulent economic times, it is more important than ever that central banks can learn from each other. I am very pleased that the Bank of England, with the support of DFID, can help organize and facilitate high quality technical cooperation with a number of partner countries around the world. "
This activity is part of an ongoing partnership between the Department for International Development (DFID) and the Bank of England to provide technical assistance in central bank monetary, economic and fiscal matters. The Bank of England has increased the number of central banks it supports due to the effects of the corona virus, and the existing program runs until 2022.
17 central banks from developing countries in Africa and Asia have participated in the webinar series, and the Bank of England is continuing its bilateral work with 10 central banks, including from Indonesia, Ghana, Morocco and South Africa.
The Bank of England and DFID also provide funded access for those working in central development banks to an online distance learning MSc in Global Central Banking and Financial Regulation. This is an online qualification developed by the Bank of England and Warwick Business School and aimed at the global central banking community and other financial professionals.
Dr. Bank of Ghana economist Frank Prah said: “Since COVID-19 has affected the world's economies, many analysts have attempted to track and aggregate the potential impact of the pandemic on the economy.
“I was very impressed by the fact that participants generally identified with the postulated mechanism of transmission of the impact of COVID-19 on the economy, regardless of whether their economies are well integrated into the rest of the world or how high the economic level is Progress is their country. As an economist in central bank inflation, the workshop was, in my view, very timely and useful because the analysis tools discussed should be helpful not only to revise the existing forecasting system but also to anticipate the likely medium to long-term effects of the pandemic economic variables. "