Regional Workshop on Local Currency Bond Market Development

Financial crises including the ongoing COVID-19 pandemic have consistently drawn attention to the need for developing countries to develop their local currency bond markets (LCBM). Deeper and efficient government securities markets, a key segment of LCBMs, play a key role in reducing financial vulnerability to shocks and enabling governments to finance critical economic and fiscal policy measures in response to them. They can also support effective monetary policy and act as an important information source for policymakers. When they are developed, LCBMs become more stable and less risky sources for financing development priorities, an important factor in making debt more sustainable. While governments in Sub- Saharan African economies have regularly promoted and adopted policies to develop their domestic debt markets, most continue to remain relatively underdeveloped compared to peers in other regions.