Financial Conditions Indicator

Financial Conditions Indicators (FCI) will provide an assessment of the financial conditions in selected developing country regions, starting with LICs in sub-Saharan Africa. These indicators have the advantage of being computable at high-frequency (monthly) as well as in real time, synthetizing into one single indicator a wide range of financial variables from various sources and of mixed frequencies (for instance, real interest rates, stock and bond market indices, commodity and market prices, volatility indices, exchange rates, residential real price index, debt service ratios and capital flows). The regional FCIs tackle the complexity of increasing financial uncertainty and instability by harnessing the richness of information flows in the era of big data and will provide a useful diagnostic tool for countries whose data inadequacies preclude country-specific analysis.