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The G20 Finance Ministers and Central Bank Governors’ Meeting was held last week in Moscow, Russia.
Finance ministers from G20 member countries and invited countries, including Spain, Brunei Darussalam, Kazakhstan, Ethiopia and Singapore, and heads of international organizations, including the International Monetary Fund (IMF), Organisation for Economic Cooperation and Development, World Bank and Financial Stability Board, reviewed agenda items for the G20 summit meeting, which will be held September in Saint Petersburg.
Outcomes from the meeting can be summarized by three points.
First, participants agreed to reduce uncertainties regarding the United States’ withdrawal of quantitative easing and exit strategy. Finance ministers also reached a consensus that changes in advanced countries’ monetary policies should be carefully calibrated and clearly communicated with the market.
They also recognized the need for emerging countries’ strong macro prudential mechanism against increased volatility in the international financial market. Deputy Prime Minister Hyun Oh-seok also noted the risks of the effects from the United States’ impetuous exit strategy implementation in his remarks during the opening ceremony.
The G20 finance ministers will also continue to cooperate for sustainable growth through job creation, employment enhancement and restructuring.
Under the common goal of employment improvement for G20 countries, participants agreed to create quality jobs and increase employment, according to the Ministry of Finance and Strategy.
As a risk management mechanism against increased volatility in the global financial market, G20 members agreed to reinforce the role of regional financial agreements (RFA). As a first step, they reached a consensus on the importance of a communication channel between the IMF and RFAs to share experiences and knowledge.
Lastly, participants reviewed the progress of financial regulatory reform and reaffirmed the implementation of the IMF quota reform and establishment of long-term investment funds.
Considering the delay of the United States’ ratification of the 2010 quota reform, the finance minister will continue discussions at a G20 ministerial meeting in October and will cooperate to develop a work plan to build an investment environment for institutional investors.
Source: Newsis (July 20, 2013)
** This article was translated from the Korean.