G20 Calls to Resolve Trade Tensions, Mnuchin Meet Yi Gang

The coming week we will sees policy meetings at no fewer than ten central banks, including the Federal Reserves, Bank of Japan, and Bank Indonesia - Photo by the Committee

JAKARTA (TheInsiderStories) – The Fourth G20 Meeting of Finance Ministers and Central Bank Governors ended today after two days of working sessions. The meeting reached no new resolution but optimistic to settling the trade dispute.

Nicolás Dujovne, Argentine Minister of the Treasury told media on Friday (12/10), the global financial leaders agreed that international trade is an important engine of growth, and need to resolve tensions which can negatively affect market sentiment and increase financial volatility. Cooperation among G20 members is key to sustain global financial stability, he said.

He continued, the financial leaders rated the outlook of the global economy, which remains positive, while global growth projections remain steady. However, the expansion has become less even across economies, and some of the downside risks that were discussed earlier in the year are starting to materialize, said Dujovne.

He stated, “As monetary policy continues to normalize in advanced economies, financial conditions tighten in emerging ones, and several emerging economies have experienced market volatility.”

Dujovne also spoke about the discussions on infrastructure for development, one of the priorities defined by the Argentine G20 presidency

“We have focused on how to catalyze private sector investment in infrastructure by putting in place the necessary conditions to develop infrastructure as an asset class.”

The conclusions of the meeting in Bali are another step towards the G20 Leaders Summit that will be held on Nov. 30 and Dec. 1 in Buenos Aires. On Nov. 29, hours before the Summit, finance ministers will meet a fifth and last time to wrap up their work during the G20 2018.

Mnuchin Met Yi Gang

Meanwhile, United States (US) Treasury Secretary Steve Mnuchin met with China People’s Bank of China Governor Yi Gang on the sidelines of the G20 meeting. After the meeting he expressed his concern about the weakness in the Yuan currency and urged that as part of any trade discussions.

“It’s reported that Yi told people in a closed-door session that China’s monetary policy was on an opposite cycle to that of the US,” he stated.

Talking on trade, the minister insisted that it has to be that both countries can reach an agreement on action items that can rebalance the relationship. He added, “We’ve made it clear that if they have real action items that they want to discuss that we will listen.”

While, on Federal Reserves (Fed) rate, Mnuchin said, President Donald Trump likes low interest rates. The president, he continues, is concerned about the Fed raising interest rates too much and slowing down the economy.

He also called this week’s stock market rout as a natural correction after the markets were up a lot and its not related to high interest rates and Fed policy.

Email: linda.silaen@theinsiderstories.com