The fourth and last gathering of G20 Finance Ministers and Central Bank Governors (FMCBG) during India’s presidency occurred in Marrakech, Morocco, from October 12 to 13, 2023.Over 370 attendees, including Finance Ministers and Central Bank Governors from G20 member countries, Invitee Countries, and Heads of International Organizations, participated in the event.
- This meeting coincided with the Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG).
- The current meeting is being followed by previous meetings that took place in Bengaluru(Karnataka), Washington DC(United States of America), and Gandhinagar, Gujarat.
- The FMCBG meeting was preceded by the Fourth G20 Finance and Central Bank Deputies (FCBD) meeting on 11 October 2023 in Marrakesh, Morocco.
- The meeting was organized into 2 sessions covering global economy topics, reinforcing Multilateral Development Banks, and discussions on crypto assets.
G20 FMCBGs adopt Communiqué at fourth and final G20 FMCBG meeting under Indian G20 Presidency
During this gathering, the G20 FMCBGs collectively approved the G20 Finance Ministers and Central Bank Governors Communique. The FMCBG communique draws its direction from the G20 New Delhi Leaders Declaration (NDLD) and has benefited substantially from the consensus achieved at the Leaders’ Summit.
i.The communique reflects the outcomes of the various G20 Finance Track workstreams completed after the July FMCBG meeting and the G20 New Delhi Summit.
ii.During India’s G20 Presidency, 4 African countries were invited to participate in G20 Summit, and India actively advocated for the African Union’s permanent membership within the G20.
iii.India’s G20 Presidency achieved significant progress within the G20 Finance Track, with a focus on various areas such as:
- Strengthening Multilateral Development Banks (MDBs) to address 21st-century global challenges.
- Advancing financial inclusion and productivity improvements through digital public infrastructure.
- Addressing issues related to crypto assets.
- Managing vulnerabilities in global debt.
- Financing the cities of the future.
- Enhancing tax transparency and capacity-building, with progress on the two-pillar solution for addressing tax challenges in the digital economy.
- Mobilizing climate finance and supporting the Sustainable Development Goals (SDGs).
iv.FMCBG stressed the need for precise monetary, fiscal, financial, and structural policies to boost economic growth, reduce inequalities, and maintain macroeconomic and financial stability.
v.Progress was made in addressing debt crises in vulnerable countries, and the work of the G20 International Financial Architecture Working Group on the debt agenda was appreciated.
- The Global Sovereign Debt Roundtable was introduced as a platform for discussing this issue.
vi.G20 ministers and Governors called on the Global Partnership for Financial Inclusion to continue its work in advancing financial inclusion for individuals and Small and Medium-sized Enterprises (SMEs).
- Digital Public Infrastructure (DPI) was another key focus, showcasing its potential for financial inclusion and productivity gains.
vii. An implementation mechanism for the G20 Sustainable Finance Technical Assistance Action Plan was introduced to scale up efforts in sustainable finance, especially in emerging markets and SMEs.
G20 FMCBG Communique Embraces G20 IEG Report on MDB Strengthening
Volume 2 of the IEG’s Report, presented during this meeting following Volume 1 in July 2023, has been well-received. The efforts of the G20 Independent Expert Group (IEG) in crafting Volume 2 of their Report are greatly appreciated.
i.Discussions also emphasized the high priority of enhancing Multilateral Development Banks (MDBs) to address the challenges of the 21st century, with a focus on addressing the development needs of low and middle-income countries.
ii.The FMCBGs have called for further discussions on the IEG recommendations to strengthen MDBs by their meeting in April 2024. India and Brazil will be taking the lead in implementing these recommendations during Brazil’s 2024 Presidency.
iii.The FMCBGs have urged the consideration of three key building blocks:
- Private capital mobilization.
- Strengthening financial capacity through capital adequacy framework recommendations and capital increase.
- The promotion of MDB collaboration as a system.
iv.The FMCBGs stress the importance of ambitious implementation of the G20 Independent Review of MDBs Capital Adequacy Frameworks, while ensuring long-term financial sustainability.
v.Implementing the recommendations proposed by the Capital Adequacy Framework (CAF) promises to enhance the leverage effect of potential capital increases.
- Decisions regarding the necessity and timing of capital increases, in addition to CAF measures, will be made by the governing bodies of each MDB.
G20 FMCBGs Adopt G20 Roadmap for Crypto Assets
FMCBG adopted a roadmap proposed in the Synthesis Paper, designating it as the G20 Roadmap on Crypto Assets. This roadmap aims to mobilize additional resources and concessional finance to enhance the World Bank’s capacity to assist low and middle-income countries in addressing global challenges.
i.The communique emphasizes the importance of this roadmap in achieving macroeconomic and financial stability and implementing a comprehensive policy framework for crypto assets, considering the impact on Emerging Markets and Developing Economies (EMDEs).
- It appreciates the collaborative efforts of the IMF and Financial Stability Board (FSB) in compiling the IMF-FSB Synthesis Paper.
ii.Furthermore, the G20 expresses its support for the global adoption of Financial Action Task Force (FATF) standards related to crypto assets to enhance the regulatory landscape and address challenges in the crypto asset space.
Note: The meeting concluded with the transfer of the G20 Presidency to Brazil at the end of India’s 1-year tenure with a focus on enhancing global economic cooperation for robust, sustainable, balanced, and inclusive growth.
India holds the Presidency of the G20 from 1 December 2022 to 30 November 2023.
Founded in 1999 after the Asian financial crisis as a forum for the Finance Ministers and Central Bank Governors to discuss global economic and financial issues.
The G20 is an international forum consisting of 19 countries (Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Republic of Korea, Mexico, Russia, Saudi Arabia, South Africa, Türkiye, United Kingdom and United States), European Union, and the African Union (AU).
- In September 2023, at the 18th G20 Summit, Indian PM Narendra Modi announced that the African Union has been included as a member of the G20, making it the 21st member.