Aid to Ukraine through early 2024 has been increased to $44 billion, allowing the International Monetary Fund to approve aid of $15.6 billion over four years. The parties also noted in a statement on Saturday the need to remain “fluid and flexible” in economic policy in the face of heightened uncertainty in the global economy. Central banks “will ensure that inflation expectations are firmly anchored and communicate their policies clearly to help limit adverse cross-country spillovers,” the statement said.
Treasury ministers and central bank governors from the United States, Britain, France, Germany, Italy, Canada and Japan have reached relatively easy agreement on a wide range of issues. , from banking sector problems to debt restructuring, agency sources said. The statement offered some support for the US drive to reduce its supply chain dependence on China, as well as a call for countries in the Global South to show that a group of wealthy countries can take concrete measures in their favor while the G20 is grappling with multiple divisions between its member countries. . As the United States seeks to reduce its dependence on China, some European countries have taken a more subtle approach.
European Union Economic Commissioner Paolo Gentiloni has warned that China’s secession poses a risk to global trade. “We are not talking about closing our trade with China, but about improving the security of our supply chains in certain strategic sectors such as rare minerals,” Gentiloni said in an interview on the sidelines of the meeting.
The talks brought together officials from emerging economies such as India, Brazil and Indonesia. While it is not uncommon for non-G7 countries to attend G7 leaders’ summits, this is the first time since 2009 that invitations have been extended to financial leaders, the interlocutors explained.
The need for global financial stability has been a hot topic since the collapse of US banks Silicon Valley Bank and First Republic Bank and the takeover by Credit Suisse. Although the impact on the economies and financial systems of the G7 countries has been limited, “this is no time for complacency”, German central bank governor Joachim Nagel said in an interview during the meetings .
Leading global economists said they would closely monitor developments in the banking sector and would be “ready to take appropriate measures” to maintain financial stability. The financial system remains “resilient” and policymakers will work to “close data, supervisory and regulatory gaps” in the banking world, the document said. Finance ministers and central bank governors also said they would address vulnerabilities in non-bank financial intermediation and address open-end fund liquidity issues.
In the meantime
The difficulties of the American authorities to prevent a default on the debt overshadowed the meeting. US Treasury Secretary Janet Yellen said in a television interview with Bloomberg on the sidelines of the event on Friday that the federal government will have to forgo some payments unless Congress raises the debt ceiling. Yellen said in an interview Saturday that she plans to brief Congress over the next two weeks on the federal government’s closeness to defaulting on its financial obligations.
Read the Latest Science and Technology News Today on The Eastern Herald.
