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Abstract
CIVETS countries refer to a group of countries consisting of Columbia, Indonesia, Vietnam, Egypt, Turkey and the Republic of South Africa, considered leaders of emerging markets. They are countries with dynamically developing economies, moderate debt level, and they have successfully managed to overcome the last financial and economic crisis within a short period of time. Similarly, as in case of the majority of countries, their monetary policy constitutes a significant element of macroeconomic policy, having influence not only on the condition of the banking sector, but the economy as a whole. Central banks of the CIVETS countries focused on inflation target as the goal of monetary policy. They used first of all the interest rate channel as well as instruments regulating liquidity of interbank money market of a standard character (open market operations, refinanced credits and reserve requirement), as well as non-standard monetary policy instruments in order to execute the policy of supporting liquidity of the banking sector in years 2006-2013.
Keywords: the CIVETS countries, monetary policy, interest rates of the central bank.
JEL Classification: E52, E58.
Introduction
The CIVETS countries refer to a group of countries - economic leaders consisting of Columbia, Indonesia, Vietnam, Egypt, Turkey and the Republic of South Africa. They are considered to be countries which will instigate the subsequent cycle of emerging markets growth. The above mentioned may be supported, among others, by such factors as: diversified and economically developing economies, more and more open markets as well as increased interest of foreign investors. Countries of the CIVETS group in majority of cases are characterized by young societies, dynamic groups of entrepreneurs, moderate debt levels and which is important - they have overcame crisis much faster than mature economies, and in certain cases they have not even faced the crisis. These countries, however, are not free from social and political problems. It is currently believed the CIVETS countries will support the subsequent cycle of emerging markets growth and they will attract the attention of the world within the next dozens of years. The monetary policy constitutes a significant element of the macroeconomic policy of those countries, exerting an impact not only on the condition of the banking sector but on the economy as a whole.
Global financial...