week in a meeting in Macau to discuss the role of these banking entities in financial cooperation between China and the Lusophone countries. The meeting resulted in the signing or renewal of agreements between the Monetary Authority of Macau (AMCM) and the central banks of three Lusophone countries.
The 2nd Conference of Central Bank Governors and Senior Financial Officials between China and the Portuguese-Speaking Countries served as a stage for Macau authorities to emphasize, on one hand, the city’s role in financial cooperation between China and the PLP, and on the other hand, to announce the digital pataca (see pages 10 and 11). During the meeting, the AMCM signed its first cooperation memorandum with the Central Bank of Brazil and renewed existing agreements with the Central Bank of Cape Verde and the Central Bank of Mozambique. The deputy governor of the Central Bank of Brazil highlighted that these agreements are “fundamental for market stability” and that it is important “to look to other jurisdictions to learn from different experiences.” It was also announced that Macau will host the 21st General Assembly of the Association of Lusophone Insurance Supervisors, which will take place in October, following the previous edition held in Lisbon.
Meanwhile, the Mozambican Bankers Association (AMB) and the São Tomé Bankers Association renewed their respective agreements with the AMCM. The president of the AMB, Teotónio Comiche, proposed that the third edition of the Conference of Central Bank Governors and Senior Financial Officials between China and Portuguese-Speaking Countries be held in Mozambique. The inaugural edition of the event also took place in Macau, in May 2019, before the pandemic began.
According to AMCM president Benjamin Chan Sau San, these initiatives strengthen Macau’s ties with Portuguese-speaking countries, with mechanisms of cooperation already established with 12 financial supervisory entities from these nations. Chan emphasized that the agreement with the Central Bank of Brazil is the 11th protocol signed with Portuguese-speaking countries, consolidating Macau’s role as a central hub in multilateral financial relations.
Macau’s Chief Executive, Ho Iat Seng, highlighted the government’s continued commitment to establishing the Macau Special Administrative Region (SAR) as a financial platform between China and Portuguese-speaking countries, recalling the hosting of the Ministerial Conference of the Forum for Economic and Trade Cooperation between China and Portuguese-Speaking Countries (Macau Forum) in April this year.
Avoiding tensions
The event brought together around 300 participants, including representatives from state financial commissions, municipal government authorities from the Guangdong-Hong Kong-Macau Greater Bay Area, the five largest Chinese state-owned commercial banks, and several financial institutions with a presence in Portuguese-speaking countries.
The governor of the Bank of Portugal, Mário Centeno, argued that the central banks of Lusophone countries can “benefit even more” from cooperation, which he described as vital during a time of great geopolitical tensions. He also emphasized the “institutional fluidity” within the framework of Lusophone central banks, the benefits of a common language, and the “diversity of realities” in which the various countries operate.
“Without cooperation, some policy responses would be impossible. Without cooperation, imbalances inevitably turn into regional tensions with geopolitical implications,” Centeno pointed out.
In his speech, the chairman of the General Assembly of the CPLP Business Confederation (CE-CPLP), Adelino Buque, emphasized that the conference was a good opportunity to strengthen the “excellent cooperation relationships, mechanisms, and networks” already existing in the financial sector between China, Macau, and the PLP. However, he also reminded that “we must not overlook” the ultimate goal of these cooperations: to build a more “cohesive and integrated” financial system that can “drive further cooperation in areas such as green finance, agriculture, and infrastructure.” Buque warned that this agenda should be pursued through interbank partnerships, along with innovation in financial instruments and policies. “These efforts should ultimately lead to greater economic growth, more sustainable development, and improvements in competitiveness within global markets,” he stated.
