Anna Seim: Riksbank strengthens central banks in developing nations

Deputy Governor Anna Seim underscored that robust institutions are a prerequisite for sustainable economic development.

She cited an independent central bank, like the Riksbank, as an example, capable of fostering stable economic conditions by maintaining low and stable inflation, safeguarding financial stability, and ensuring public payment systems.

This institutional framework creates an environment conducive to investment in human and real capital, thereby driving long-term economic progress.

Ms Seim noted that while all central banks share a fundamental mission, their operating environments vary significantly.

"Transparency facilitates scrutiny of our activities.

But open and clear communication can also make monetary policy more effective," she stated, explaining the Riksbank's commitment to openness.

Ms Seim pointed out that central banks in many countries where SIDA operates face distinct challenges, including nascent regulatory frameworks, underdeveloped financial markets, or insufficient infrastructure.

They may also lack critical analytical capabilities or be burdened by an excessive number of mandates.

The Riksbank addresses these issues through technical assistance, a program running for 25 years and financed by a special agreement with SIDA since 2002. This initiative aims to bolster central banks as institutions, enabling them to contribute to their countries' long-term economic stability.

The Riksbank collaborates with a select number of central banks at any given time, currently engaging with Ethiopia, Rwanda, Ukraine, and the Palestinian Monetary Authority on various projects.