The 3rd G20 Finance Ministers and Central Bank Governors Meeting under the Indonesian Presidency was held in Bali on July 15 and 16, 2022 in a hybrid mode. The meeting discussed global economy, global health agenda, international financial architecture, sustainable finance, financial sector issues, infrastructure investment and international taxation. Governor Yi Gang and Deputy Governor Chen Yulu attended the meeting via video link.
The overall assessment of Ministers and Governors was that the global economic recovery and financial stability face multiple challenges, with elevated risks from the Covid-19, inflationary pressures, geopolitical developments, as well as food and energy supply tensions, and volatility in cross-border capital flows. It is important to support the role of G20 as the premier forum for international economic cooperation by upholding multilateralism and strengthening policy coordination so as to preserve price stability and avoid negative spillovers, and collective efforts to deploy supportive policy measures in a flexible and targeted manner are essential to address the challenges.
The Ministers and Governors reaffirmed their support for low-income countries in responding to economic shocks. They welcomed the progress in voluntary rechanneling of Special Drawing Rights (SDRs), and supported early operationalization of the IMF’s Resilience and Sustainability Trust, which would provide long-term financing for countries in need. They supported timely, orderly, and coordinated implementation of the Common Framework on a case-by-case basis.
They agreed to improve international financial architecture, including through strengthening the Global Financial Safety Net with the IMF at its center, and ensuring the timely conclusion of the 16th General Review of Quotas by end 2023. They reiterated their commitment to strengthening long-term financial resilience of the international financial architecture, including by developing local currency capital markets and promoting sustainable capital flows.
The Ministers and Governors reaffirmed the importance of transition finance. They applauded the strong progress achieved by the G20 Sustainable Finance Working Group in developing a transition finance framework, and generally supported the ongoing work on financial institutions’ net-zero commitments and enhancing the accessibility and affordability of sustainable finance. They expressed support for implementing the G20 Sustainable Finance Roadmap as a way to mobilize market financing for an orderly low carbon transition.
Meeting participants agreed on the need to reinforce global financial system resilience. They supported continued coordination on the implementation of international standards and limiting negative cross-country spillovers to maintain global financial stability. They also supported implementing the G20 Roadmap for Enhancing Cross-Border Payments, and agreed to strengthen cross-border coordination and regulation of crypto-assets.
Governor Yi provided an update on China's economic and financial developments, noting that inflation in China is moderate and is expected to be stable and, in response to downward pressures due to the Covid-19 and external shocks, the PBoC will step up the implementation of the sound monetary policy to enhance support for the real economy. As co-chair of the G20 Sustainable Finance Working Group, the PBoC will advance the development of the transition finance framework and promote joint implementation of the G20 Sustainable Finance Roadmap, enabling the financial sector to better support carbon emission peak and carbon neutrality objectives.
