G7 pledges to stabilize global financial system

Sunday, May 14, 2023 | 08:26:49

90 views

In a joint statement on May 13, after a three-day meeting in Niigata City (Japan), Finance Ministers and Central Bank Governors of the Group of Seven (G7) leading industrialized countries pledged to take action to ensure the stability of the financial system, amid growing concerns about the risk of a financial crisis after a series of US banks went bankrupt. Believing that the financial system is still resilient, the G7 announced that they will coordinate with regulatory agencies to continue monitoring developments in the financial industry.

G7 Finance Ministers and Central Bank Governors Meeting in Japan.

Japanese Finance Minister Shunichi Suzuki noted that financial worries can spread overnight through social media and that online banking apps that allow withdrawals outside business hours can trigger bank runs. Suzuki stressed the need to share lessons learned from recent bank failures in the United States.

G7 Finance Ministers also agreed to launch a plan later this year to diversify global supply chains to help protect energy security. Under the plan, G7 economies will provide aid to low- and middle-income countries so that they can play a larger role in the supply chain for energy-related products.

The debt of developing countries is also on the agenda, with a rare session on financial guidance with six countries including Brazil, India and South Korea. As the rotating chair of the G7, Japan aims to set a clear agenda to launch mutually beneficial partnerships with low- and middle-income countries to build strong supply chains for products crucial to decarbonisation.

At a meeting on the sidelines of the summit, Japanese Finance Minister Shunichi Suzuki and US Treasury Secretary Janet Yellen reaffirmed the importance of cooperation between the two countries in addressing common challenges. Japanese and US officials discussed a range of hot issues from macroeconomic management to the conflict in Ukraine and the need to strengthen supply chains.

Meanwhile, the G7 Science and Technology Ministers Meeting also took place in Sendai City (Japan). The conference focused on discussing international science and technology cooperation to address global challenges, freedom of research and promotion of open science, transparency and confidentiality in research...

The White House said that US President Joe Biden will travel to Hiroshima, Japan, on May 17 to attend the G7 summit. Previously, Mr. Biden left open the possibility of canceling his trip to Asia if the debt ceiling deadlock that is putting the US at risk of default is not resolved.

According to nhandan.vn

Source link