TrivanaNews.com – Finance Business, G-20 Agree to Strengthen Cooperation Pascabrexit, G20 member countries agreed to be proactive and work together in overcoming the consequences on the economy and global finance after the release of the UK from the European Union (Brexit). It was raised in the meeting of Finance Ministers and Central Bank Governors of the G20 on Saturday and Sunday (23-24 / 7/2016), in Chengdu, China. The meeting was attended by the Governor of Bank Indonesia, Agus DW Martowardojo, who was accompanied by Deputy Governor Perry Warjiyo, and attended by the Minister of Finance of the Republic of Indonesia, Bambang Brodjonegoro.
Finance Business, G-20 Agree to Strengthen Cooperation Pascabrexit
In a written statement on Monday (7/25/2016), in general, the Ministry of Finance and Central Bank Governors of the G20 member considers that the global economic recovery is continuing, though with growth still weak and does not meet expectations. The global economy still faces risks stemming from economic factors and non-economic. In particular, the results of a referendum on British exit from the European Union (Brexit) also adds to the uncertainty in global financial markets. To respond to this, G20 members agreed to take all kinds of policies available, both monetary, fiscal and structural reforms, to maintain the confidence and support growth. G20 members also agreed to be proactive and work together in overcoming the consequences of post-Brexit.
BI Governor specifically convey the importance of clear communication and effective contingency plans to reduce uncertainty and risk of post-Brexit turmoil. BI governor also encouraged the UK and the European Union to continue the process seamless and transparent transition to the new partnership. The optimal solution is achieved both parties believed would not only benefit the European region, but also for the global economy.
Bank Indonesia also stressed the importance of efforts to improve the resilience of the global economy amid high uncertainty and risk shocks. In this regard, Bank Indonesia appreciates the IMF has conducted exploration of new facilities in accordance with the needs of members, including developing countries, as one of the agenda the strengthening of Global Financial Safety Net (Global Financial Safety Net or GFSN). One of the concrete proposals of Bank Indonesia which also received support from a number of G20 countries are developing prevention facilities (precautionary facility) from the IMF that resembles swap instruments (swap like facility).
At the meeting, also conducted monitoring and evaluating progress G20 cooperation since the beginning of 2016 under the leadership of China. The G20 Cooperation covers seven main agenda. First, the global economy. Second, a framework for a strong global economic growth. sustainable, balanced and inclusive. Third, financial sector reforms. Fourth, the international financial architecture. Fifth, investment and infrastructure. Sixth, international taxation. And lastly, other issues such as financing climate-related and environmental (climate and green finance). Furthermore, the results of the meeting will be reported to the G20 Heads of State Summit in Hangzhou, China, on September 4 to 5, 2016.