Indonesian Finance Minister Sri Mulyani Indrawati delivers the opening remarks for the Group of 20 Meeting of Finance Ministers and Central Bank Governors in Nusa Dua, on the Indonesian resort island of Bali, on July 15, 2022.
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CFO at Group 20 meeting in Bali “strongly condemns” the war in Ukraine and expressed concern about the “alarming increase in food and energy insecurity.”
That is according to a statement by G-20 host country Indonesia on Sunday.
The group met for more than two days at the resort on the island of Bali, could not reach consensus on a number of issues and did not issue a joint statement. The previous meeting of the G-20 financial leaders in Washington in April also ended without the release of a joint communique.
Instead, a statement released by the Central Bank of Indonesia on Sunday summarized the key discussion points of several rounds of meetings held privately. In particular, CFOs and central bankers from the group pledged to combat food insecurity and high prices that continue to “disproportionately” impact vulnerable countries. .
“Many members agreed that the recovery of the global economy has slowed and is facing a major setback due to Russia’s war against Ukraine, which has been strongly condemned and called for an end to the war. “, the statement from Indonesia’s central bank said.
Many members are willing to take collective action quickly on food security, including by working with other initiatives.
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“Members noted that existing challenges have been exacerbated, including supply-demand mismatches, supply disruptions and rising commodity and energy prices, which have added to inflationary pressures and contributed to increase the risk of food insecurity.”
“Many members noted the importance of continued action on climate change, as well as addressing vulnerable debt,” it said.
All members at the meeting – mostly including Russia and Ukraine – pledged to use all available policy tools to tackle the food crisis. However, there is no indication that commitments have been made to secure future sanctions against Russia regarding food and key supplies.
The rise of supply chains during the pandemic – now made worse by the Russia-Ukraine crisis – has delayed and limited the delivery of food, fertilizer and fuel to many parts of the world. The world includes countries in Africa and the Middle East.
“Many members are willing to take swift collective action on food security, including by working with other initiatives,” the statement said.
Overall, all G-20 central banks have agreed to tackle inflation and adjust monetary policies to curb soaring prices.
From climate change to digital currency
Central bankers and finance ministers also reaffirmed their commitment to controlling the Covid-19 pandemic.
We welcome the establishment of a Financial Intermediation Fund (FIF) for Pandemic Prevention, Preparedness and Response, developed by the G20 Joint Health-Financial Task Force and chaired by the World Bank. “, the statement from Indonesia said.
The FIF – sponsored by its members voluntarily – will ensure adequate financing, maintenance and better coordination of pandemic responses.
Climate change was discussed and members pledged to respond COP26 committed to achieving net neutrality and carbon neutrality.
The group promised to phase out and streamline, over the medium term, “inefficient fossil fuel subsidies that encourage wasteful consumption.”
“We continue to reiterate and reaffirm the developed countries’ commitment to the shared goal of mobilizing $100 billion in climate finance each year by 2020 and annually through 2025 to address the needs of the developing countries,” he said. developing, in the context of meaningful mitigation actions”. the statement said.
The group acknowledged that much progress had been made in the use of digitalization in financial transactions globally and agreed to step up efforts to combat money laundering and terrorist financing.
“We welcome continued discussions on Central Bank Digital Currencies as they can be designed to facilitate cross-border payments while maintaining system stability. international monetary and financial system,” the statement said.
