Connect with us
Finance Digest is a leading online platform for finance and business news, providing insights on banking, finance, technology, investing,trading, insurance, fintech, and more. The platform covers a diverse range of topics, including banking, insurance, investment, wealth management, fintech, and regulatory issues. The website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.
NEWS

G7 finance leaders pledge financial stability, supply chain diversity

Published On :

G7 finance leaders pledge financial stability, supply chain diversity

By Christian Kraemer and David Lawder

WASHINGTON (Reuters) -Group of Seven (G7) finance leaders pledged on Wednesday to take action to maintain the stability of the global financial system after recent banking turmoil and to give low- and middle-income countries a bigger role in diversifying supply chains to make them more resilient.

Their communique did not mention China by name, but the supply chain language fit in with “friend-shoring” efforts by industrial democracies to work with each other to become less reliant on the Asian manufacturing powerhouse for battery minerals, semiconductors and other strategic goods.

We commit to jointly empowering low- and middle-income countries to play bigger roles in supply chains through mutually beneficial cooperation by combining finance, knowledge, and partnership, which will help contribute to sustainable development and enhance supply chain resilience globally,” the G7 finance ministers and central bank governors said in the statement.

The finance chiefs, meeting on the sidelines of International Monetary Fund and World Bank meetings in Washington, said they had discussed recent financial sector developments after the failure of two U.S. banks and the forced sale of troubled global lender Credit Suisse.

Shunichi Suzuki, the finance minister of G7 host Japan, said that stability had returned to the financial system after strong action by policymakers

We will continue to closely monitor financial sector developments and stand ready to take appropriate actions to maintain the stability and resilience of the global financial system,” the G7 finance leaders said.

‘SHARED VALUES’

The ministers said that supply chains needed to achieve both efficiency and resilience, helping to maintain macroeconomic stability and make economies more sustainable. The statement cited the need to diversify the “highly concentrated” supply chains for clean energy technologies.

In this endeavor, we will stand firm to protect our shared values, while preserving economic efficiency by upholding the free, fair and rules-based multilateral system and international cooperation,” the G7 finance leaders said, using language often used to exclude China and other autocratic regimes.

Suzuki said the language was not specifically aimed at China, but added that the G7 group views a high concentration of supply chains in a single country was not desirable, noting that many supply chains were highly concentrated in China.

The G7 is made up of the United States, Canada, Britain, France, Germany, Italy and Japan.

The International Monetary Fund has warned in its latest economic forecasts that fragmentation of the global economy into geopolitical blocs is a significant factor in reducing longer-term growth potential, with only 3% growth expected in 2028. That’s the lowest five-year projection since the IMF started issuing such forecasts in 1990.

But French Finance Minister Bruno Le Maire, who participated in the G7 meeting, said such diversification away from China and alliances with allies were necessary.

As far as the production of green hydrogen is concerned, or artificial intelligence or semiconductor chips, or electric batteries, or other strategic goods, we need to be more independent,” Le Maire told reporters.

JOINT RESEARCH

In addition to working more closely with developing countries on supply chains, the G7 finance officials pledged to encourage joint research and development efforts among G7 members and other “interested parties.

They said they would empower the private sectors in their own countries to diversify their supply chains, through transparent and predictable use of public finance tools that can catalyze private resources.

The ministers also pledged to support education, training and skills development, “underpinned by good governance and compliance with human rights” and to reduce greenhouse gas emissions and enhance environmental protections in their supply chains.

(Reporting by Christian Kraemer; Additional reporting by David Lawder and Andrea Shalal; Writing by David Lawder, Editing by Leslie Adler, Andrea Ricci and Diane Craft)

 

Continue Reading

Why pay for news and opinions when you can get them for free?

       Subscribe for free now!


By submitting this form, you are consenting to receive marketing emails from: . You can revoke your consent to receive emails at any time by using the SafeUnsubscribe® link, found at the bottom of every email. Emails are serviced by Constant Contact

Recent Posts