“China said the G20 FMCBG (finance ministers and central bank governors) meeting is not the right forum to discuss geopolitical issues,” said the third G20 FMCBG outcome document and chairman’s summary released late Tuesday. Meanwhile, Russia has isolated itself. from the status of the document.
“The majority of Members strongly condemn the war in Ukraine, stressing that it is causing enormous human suffering and exacerbating existing vulnerabilities in the global economy, stifling growth, increasing inflation, disrupting supply chains and growing energy and food insecurity, and increasing risks to financial stability.” stated in the document.
“There were other views and different assessments about the situation and the sanctions. Recognizing that the G20 is not the forum to address security issues, we recognize that security issues can have significant consequences for the global economy.”
India’s Finance Minister Nirmala Sitharaman said the chairman’s statement was issued because there was still no consensus among members on a common language on the Russia–Ukraine war.
“Our position since February has been that we have taken the statement from Bali, the statement from the leaders that came to the summit. We do not have the authority to change the language given at the Balinese leaders’ summit. Therefore, it should be left to the leaders to decide on this during the summit in September.”
India, which is chairing the G20 this year, has maintained strategic neutrality over the Russian invasion of Ukraine.
The FMCBG meetings were organized in five thematic sessions, including Global Economy and Global Health, Sustainable Finance and Infrastructure, International Financial Architecture, International Taxation and the Financial Sector, and Financial Inclusion.
The outcome of this year’s 3rd FMCBG meeting will be discussed at the 18th G20 Heads of State and Government Summit which will take place in September 2023 in New Delhi, India.
Meanwhile, global debt and vulnerabilities were discussed in depth in the July 17-18 meeting, said Sitharaman at a press conference after its conclusion. “We have seen a definite movement by developed countries to meet their $100 billion pledge for climate finance this year,” he said. “China’s response to debt restructuring today appeared encouraging, However, the G20 has not yet done so, he said. There is not a common language on the ongoing Russia-Ukraine war.
Sitharaman said that many G20 member countries have condemned Russia for stopping the movement of grain from Ukraine through the Black Sea.
“Many members condemned it, saying it should not have happened. “The (grain) passing through the Black Sea should not have been stopped or suspended,” he said, adding that high inflation is a major concern for the entire G20, which discussed food and energy security.
The FMCBG meeting was attended by finance ministers from Australia, Canada, China, Indonesia, Italy, Japan, South Korea, Saudi Arabia, South Africa, Turkey, the US and India.
Meanwhile, Reserve Bank of India Governor Shaktikanta Das said that there has been a marked change in thinking about Central Bank Digital Currency (CBDC). “It is now recognized by a large number of nations, both G20 members as well as nations that are not members, that CBDCs are an important aspect that needs more serious consideration. As a part of the FMCBG deliberations, the work done by various agencies was taken on board.”
“In particular, with regard to cross-border payments, it was also recognized that there is great potential for CBDCs to facilitate easy, seamless, seamless cross-border payments and this agenda needs to be taken forward. So it’s a work in progress.”