Wednesday, May 31, 2023

G7 commits to take “necessary measures” for financial stability

The world’s seven great economic powers have met in Japan to set out a new strategy that begins by limiting China’s dependence on “vital” raw materials. In addition, the G7 pledged to take “necessary measures” to maintain financial stability, following the banking crisis at Credit Suisse in Europe and other banks, including SVB in the US, also stepped forward to show “agility and resilience”. Is. “in their macroeconomic policies and thus combat economic uncertainties.

In their joint statement published today, the leaders of the Group of Seven expressed confidence in the resilience of the financial system after adapting to “multiple shocks” such as the COVID pandemic, the Russo-Ukrainian war and inflationary pressures, but noted the need to To be “vigilant”. The G7 has pledged to pursue growth-oriented policies that “support medium-term fiscal stability and price stability.”

Major world powers acknowledged that “inflation remains high,” but said central banks remain “committed” to their policies to stabilize prices.

The multinational forum devoted a section to the transformation of the financial sector, including banking digitization, which they expect to address in more detail in the future with the aim of “taking advantage” of the benefits of this innovation and knowing the “potential risks” . “That they are meant to respond better to contingencies.

Following the recent episode of bankruptcies of several US regional financial institutions and the problems experienced by Swiss Credit Suisse, the G7 proposed to explore ways to strengthen the existing financial system.

Crypto assets are another headache for the group, which believes that “effective monitoring, regulation and supervision are critical” to address the risks posed by these activities while supporting “responsible innovation”.

The leaders of Canada, France, Germany, Italy, Japan, the United Kingdom and the United States expressed their concern about the “serious challenges” regarding debt sustainability, especially among small and medium-sized economies, and the need to set up agencies. expressed concern. Respond in time to potential problems.

Nation World News Desk
Nation World News Desk
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