Annex 6 to OIC/COMCEC/36-20/REP
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monetary authority may wish to reduce money supply by the same amount or any amount
that would make such issue non-inflationary, by increasing the legal reserve ratio.
- The monetary authority would set the instructions to control the investment of
central deposits.
- The monetary authority can issue more CDC's and make them available for sale to
the public, including IFIs. Their profits would be added to the Central Deposits in IFIs.
- The monetary authority may allow trading of CDC's in money market.
- The monetary authority can change the rate of growth of money through: (1) Adding
to or subtracting from its Central Deposits balances with IFIs, (2) using open market
operations in CDC's to adjust the rate of growth of the money supply.
Instruments to Realize the Policy Advices:
COMCEC Financial Cooperation Working Group: In its subsequent meetings, the
Working Group may elaborate on the above-mentioned policy areas in a more detailed
manner.
COMCEC Project Funding: Under the COMCEC Project Funding, the COMCEC
Coordination Office issues calls for project proposals each year. With the COMCEC
Project Funding, the member countries participating in the Working Groups can submit
multilateral cooperation projects to be financed through grants by the COMCEC
Coordination Office. For realising above- mentioned policy recommendations, the
member countries can utilize the COMCEC Project Funding facility. These projects may
include the organization of seminars, training programs, study visits, exchange of experts,
workshops and preparation of analytical studies, needs assessments and training
materials/documents, etc.
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