The Kingdom was represented at this session by a delegation led by the Wali of Bank Al-Maghrib (BAM),Abdellatif Jouahri. This session took place with the participation of the Secretary General of the Arab League, Ahmed aboul Gheit, the Chairman of the Board of Directors and Director General of the Arab Monetary Fund, Abdulrahman Al Hamidy, in addition to governors of Arab central banks and heads of Arab and international financial institutions.
The meetings addressed numerous priority economic topics including the management of monetary policy in an surroundings marked by uncertainty and recurring tensions, in addition to the repercussions of private sector debt on the financial stability of Arab countries.
It was also a question of addressing the role of central banks in combating the challenges of climate change and of discussing the standards to be adopted to regulate the use of artificial intelligence (AI) applications in the financial sector.
The meetings of the Council examined the results of the work of the technical committees and specialized working groups and approved the final version of the annual report on financial stability in the Arab countries for the year 2024 and the unified Arab economic report 2024, along with the adoption of the final version of the proposed themes to be included in the unified Arab speech to be delivered during this year’s IMF meetings.
Furthermore, the working documents prepared by the General Secretariat of the Council were examined on issues that impact the performance of Arab banks and central banks, in particular the mechanisms for managing monetary policy in a environment characterized by uncertainty and frequent tensions.
On the sidelines of the meeting,a high-level workshop was held under the theme ”Consolidating the strength and stability of the financial system in the era of digitalization” to discuss the implications of monetary policy and financial stability in a fluctuating financial context,as well as ways to improve the use of artificial intelligence in the financial sector and to curb the challenges linked to cyber risks.
How can AI influence regulatory standards in the Arab financial sector?
Interview with Financial Expert on Recent Arab Monetary Forum
Date: [Insert Date]
Interviewer: [Editor Name], editor at Time.news
Expert: [expert Name], [Expert’s Title and Affiliation]
Q: Thank you for joining us today. The recent session lead by Abdellatif Jouahri, the Wali of Bank Al-Maghrib, brought together key figures from across Arab nations. What do you see as the main implications of these discussions for the Arab financial landscape?
A: Thank you for having me. The meetings highlight an urgent need for cohesive monetary policies across Arab countries given the prevailing economic uncertainties. The collaborations between central banks and financial institutions are vital to enhancing regional financial stability,especially considering the challenges posed by private sector debt. We’re at a moment were unified efforts could significantly mitigate risks affecting our economies.
Q: Climate change was another critical topic discussed in the meetings. How can central banks play a role in combating these challenges?
A: Central banks have a unique position to influence financial systems towards sustainability. They can incorporate climate risk assessments into their monetary policies and adjust lending practices to favor green projects. By doing so, they not only stabilize their financial environments but also promote long-term ecological benefits, which is essential for lasting economic growth.
Q: with the rapid growth of AI in the financial sector, the workshops discussed regulatory standards.What should be the primary focus for financial institutions?
A: Financial institutions must prioritize developing a robust framework for AI deployment. This includes ensuring clarity and accountability in AI applications to mitigate ethical concerns and protect consumer rights. Moreover, incorporating strong cyber risk strategies is crucial as AI systems can be vulnerable to attacks. The security of these digital infrastructures must not be overlooked.
Q: The discussions also resulted in the annual report on financial stability for Arab countries for 2024. What key aspects should stakeholders focus on in this report?
A: Stakeholders should pay close attention to the detailed analyses of economic vulnerabilities identified in the report. Understanding the interplay of regional debt dynamics, central bank strategies, and global market influences will be critical. Additionally, the emphasis on digitalization and the associated risks should inform how institutions structure their operations moving forward.
Q: As a final point, what practical advice would you give to businesses operating in this fluctuating economic context?
A: Businesses need to adopt a proactive stance regarding financial management.Establishing robust risk assessment frameworks and maintaining open lines of interaction with their financial institutions can prepare them for shifts in monetary policy. Furthermore, investing in technology that boosts resilience and adaptability will be key for navigating the challenges of an increasingly digital and uncertain marketplace.
Q: Thank you for your insights today. This conversation sheds light on the crucial topics surrounding monetary policy and financial stability in the Arab region.
A: Thank you for having me. It’s imperative we continue these discussions as we move forward in an evolving financial landscape. The future depends on our collective ability to anticipate challenges and act effectively.
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