G20 Finance Ministers and Central Bank Governors Meeting Communique 23-24 July 2016

posted in: Banking System, Banks, Economy, Notes | 0

http://www.mof.gov.cn/zhengwuxinxi/caizhengxinwen/201607/t20160724_2367836.htm

The Global economy is recovering slowly though significant risks persist

“The global economic environment is challenging and downside risks persist, highlighted by fluctuating commodity prices, and low inflation in many economies. Financial market volatility remains high, and geopolitical conflicts, terrorism, and refugee flows continue to complicate the global economic environment..”

Brexit added to uncertainty but they are positioned to address the consequences.

“ the outcome of the referendum on the UK’s membership of the EU adds to the uncertainty in the global economy. Members of the G20 are well positioned to proactively address the potential economic and financial consequences stemming from the UK referendum. In the future, we hope to see the UK as a close partner of the EU.”

They are determined to see growth using all tools possible with clear communication of actions

“We are taking actions to foster confidence and support growth. In light of recent developments, we reiterate our determination to use all policy tools – monetary, fiscal and structural – individually and collectively to achieve our goal of strong, sustainable, balanced and inclusive growth…We will carefully calibrate and clearly communicate our macroeconomic and structural policy actions to reduce policy uncertainty, minimize negative spillovers and promote transparency.”

They promise to not use competitive devaluation & protectionism

“We reiterate that excess volatility and disorderly movements in exchange rates can have adverse implications for economic and financial stability…We reaffirm our previous exchange rate commitments, including that we will refrain from competitive devaluations and we will not target our exchange rates for competitive purposes. We will resist all forms of protectionism.

A steely response to excess steel capacity

“We recognize that excess capacity in steel and other industries is a global issue which requires collective responses… The G20 steelmaking economies will participate in the global community’s actions to address global excess capacity.”

Reaffirmed support for financial reforms including Basel III

“Recent market turbulence and uncertainty have once again highlighted the importance of building an open and resilient financial system. To this end, we remain committed to finalizing remaining critical elements of the regulatory framework and the timely, full and consistent implementation of the agreed financial reforms, including Basel III and the total-loss-absorbing-capacity (TLAC) standard as well as effective cross-border resolution regimes.”

The end of fossil fuel seems nigh as commitment to end them is reaffirmed.

“We reaffirm our commitment to rationalize and phase out inefficient fossil fuel subsidies that encourage wasteful consumption, over the medium term, recognizing the need to support the poor. Further, we encourage all G20 countries to consider participation in the voluntary peer review of inefficient fossil fuel subsidies that encourage wasteful consumption.