On February 17 and 18, 2022, G20 Finance Ministers and Central Bank Governors (FMCBG) had the first meeting under the Indonesian Presidency in Jakarta in a hybrid mode. The meeting discussed annual agendas, covering global economic and health situations, supporting low-income countries in their response to COVID-19, sustainable finance, reform in financial sectors, international taxation, etc. A communique was published after the meeting. PBC Governor Yi Gang and Deputy Governor Chen Yulu attended the meeting online and Yi delivered a speech.
The finance chiefs noted that the global economic recovery endures but with a different pace in each country. Some are exposed to greater inflationary pressures. All sides reaffirmed to use all available policy tools to address the impact of the pandemic. They also agreed to work on well calibrated and communicated Covid-19 exit strategies, in order to support an equitable and strong recovery.
Besides, the finance chiefs reiterated the commitment to support those vulnerable countries. They welcomed the progress on voluntary mobilizing the Special Drawing Rights (SDRs), supported early operation of the IMF’s Resilience and Sustainability Trust (RST), and reaffirmed to advance the conclusion of the 16th General Review of Quotas. Besides, they welcomed the progress on the G20 Common Framework for Debt Treatment, and called for the next steps to be more timely, orderly and coordinated. They also stressed the importance for private creditors and other official bilateral creditors to commit to providing debt treatments on terms at least as favorable, to ensure fair burden sharing in line with the comparability of treatment principle.
According to the meeting, sustainable finance is critical to a green, resilient and inclusive global economic recovery. All parties will advance the G20 Sustainable Finance Roadmap, take action to enable transition finance to support an orderly green transition, scale up sustainable finance markets, and ensure developing economies and SMEs to have an affordable access to green financing.
The attendees committed to strengthening the resilience of non-bank financial intermediary and supporting the continued implementation of the G20 Roadmap for Enhancing Cross-Border Payments. The G20 will continue to comprehensively evaluate the potential risks arising from technological innovations to global financial stability, encourage relevant international agencies to analyze the regulatory policies on crypto-assets and bridge any gaps.
Governor Yi talked about the China’s latest economic and financial developments, noting that inflation in China is moderate, and its monetary policy is flexible, targeted and appropriate to enhance support for the real economy. Building on that, China will make greater efforts to conduct cross-cyclical adjustment for high-quality economic development. As co-chair of the G20 Sustainable Working Group, the PBC will work with relevant parties in the implementation of the Roadmap.