The representation of women in central banking leadership roles has reached a historic high, with recent appointments pushing the number of female governors to 29 globally. While this marks significant progress, women still hold just 16% of the top positions across the world’s 185 central banks, according to an April report by the Official Monetary and Financial Institutions Forum (OMFIF). Despite the gains, the journey toward gender parity in central banking remains an ongoing challenge.
A DECADE OF PROGRESS IN FEMALE LEADERSHIP
Over the past year, the number of women leading central banks increased from 23 to 29, the most substantial rise in more than a decade. This growth reflects a broader global effort to enhance gender diversity in leadership roles, particularly in smaller economies that are increasingly appointing women to these influential positions.
NOTABLE APPOINTMENTS IN 2023 AND 2024
Some of the notable appointments this year include Jasmina Selimović, who began her six-year term as the governor of Bosnia and Herzegovina’s central bank, and Elizabeth Genia, who was promoted from acting governor to the top job in Papua New Guinea. These appointments, alongside Michele Bullock’s historic appointment as the first woman to lead the Reserve Bank of Australia in 2023, highlight the growing trend of women breaking through the glass ceiling in central banking.
IMPACT OF GENDER DIVERSITY IN CENTRAL BANKING
Research from the International Monetary Fund (IMF) suggests that greater gender diversity in senior positions can lead to increased diversity of thought, better checks and balances, and ultimately, enhanced economic and financial stability. This underscores the importance of continued efforts to close the gender gap in central banking and the broader field of economics.
BARRIERS TO GENDER PARITY
Despite the progress, women remain underrepresented in central banks and the economics profession. An IMF survey of the European Central Bank (ECB) and its Group of Seven counterparts revealed that fewer than half of employees are women, and only a third are economists or managers. This indicates that while policies to eliminate gender gaps have been implemented, they have only been partially successful.
STEPS TOWARD GREATER GENDER BALANCE
Isabel Schnabel, an ECB Executive Board member, has been vocal about the substantial gender imbalance in economics and the need for change. In a 2020 speech, Schnabel emphasized that barriers to gender parity are not insurmountable and suggested that mentoring opportunities and better childcare support could help narrow the gender gap.
GLOBAL PICTURE: COUNTRIES LEADING THE WAY
The recent appointments of women to central bank leadership roles in Bosnia and Herzegovina, Papua New Guinea, Australia, Cambodia, Georgia, Moldova, and Montenegro reflect a growing recognition of the value of gender diversity in economic policymaking. These countries are setting an example for others to follow, demonstrating that progress is possible even in smaller or emerging economies.
OMFIF’S 2024 GENDER BALANCE INDEX
OMFIF’s 2024 Gender Balance Index highlights these advancements while also pointing out that much work remains to be done. The index serves as a reminder that although the number of women in central bank leadership is increasing, the overall representation of women in the field is still far from parity.
The rise of women in central banking is a positive step toward achieving greater gender diversity and enhancing global economic stability. However, with women still holding only 16% of central bank governor positions worldwide, there is a clear need for continued efforts to break down the barriers that prevent women from reaching the highest levels of economic leadership. As more countries recognize the benefits of gender diversity, the hope is that these numbers will continue to rise, bringing us closer to a more balanced and inclusive global economy.
