Foreign Exchange Market Fluctuations and Global Commodity Price Rises Top Discussions

IMFC and G-20's Finance Ministers Joint Meeting Next Thursday

Dr. Youssef Boutros Ghali the Minister of Finance and Head of the International Monetary and Financial Committee (IMFC) will chair the two-day meetings to be held in Washington this Friday.

A number of issues related to global economy developments will be discussed in the meetings, said Dr. Youssef Boutros-Ghali. High on the agenda will be the current developments on the global arena, evaluation of policies pursued by countries facing the global financial crisis, and the risks that still beset global economic performance and market stability. These include slow growth and high unemployment rates in the developed economies, low levels of bank credit, and the large flows of hot money that afflict many of the major emerging markets in particular, as well as foreign exchange market fluctuations and global commodity price raises.

The meetings will also discuss further policies and actions required to address structural problems and errors which led to the global crisis and threatened the very core of the world financial and monetary system, Dr. Ghali added.

 During the meetings, Dr. Ghali would stress the importance of adopting a clearly-defined agenda for redressing imbalances in the global economy, as well as the treatment of weaknesses in financial control, banking and capital market frameworks, he added.

On the other hand, Mr. Hani Qadri, Assistant Minister of Finance, who chaired the preliminary meetings of the (IMFC), said the meeting came within the framework of preparations for the Ministerial Meeting, and the talks to be held in Washington on internal IMF reforms.

On top of these reforms, come the internal governance frameworks in the august organization and the re-allocation of state shares and voting power in favor of emerging markets and developing countries.

The meetings will also touch on how to improve the IMF's performance in controlling global economic integrity, and enhance its funding role and programs.

Dr. Youssef Boutros-Ghali will meet his South Korean counterpart, the S. K. Minister of Strategy and Finance who chairs the G-20's current session, after a working breakfast, to be attended by all the IMFC's members and the G-20's ministers on Thursday, Mr. Qadri added.

The said meeting, tagged as one of the most important economic blocs in the world, will be the second of its kind which brings together IMFC and the G-20 members.

The first meeting was held in April 2009 on the sidelines of the Spring Meetings of the IMF and the World Bank (WC).

Dr. Ghali will also have bilateral and smaller meetings with a number of Finance Ministers of IMF member states, to accelerate negotiations on various economic issues that remain unresolved for IMF members, Mr. Qadri added.

(Source: Ministry of Finance)