2nd Meeting of G20 Finance Ministers and Central Bank Governors (FMCBG)

• 14 Apr 2023

On 12^th and 13^th April, 2023, the second meeting of the G20 Finance Ministers and Central Bank Governors (FMCBG) was held in Washington DC on the margins of the 2023 Spring Meetings of the International Monetary Fund and the World Bank Group.

• Objective: The objective of this FMCBG meeting was to deliberate on the progress made by the various workstreams of the G20 Finance Track on the deliverables that were tasked to them by the Ministers and Governors in the February G20 FMCBG Chair’s Summary and Outcome Document and to seek guidance on the way forward.
• Key Challenges: The members discussed the key challenges to the global economic outlook, including the war in Ukraine, food and energy insecurity, climate change, and recent risks to financial stability.
• Members agreed that the G20 can contribute to building a common understanding on fostering a conducive environment for global economic recovery, and ensuring that the most vulnerable countries and sections of the population are adequately protected.
• Debt Crisis: On the debt agenda, discussions focused on strengthening multilateral coordination towards addressing the increasing debt distress in low-income and vulnerable middle-income countries. Ministers and Governors reiterated the need to swiftly complete the ongoing debt treatments under the Common Framework and beyond.
• SDGs: The discussions also focussed on the mobilisation of resources for climate change, the role of the multilateral financial institutions in catalysing private finance flows for Sustainable Development Goals and the role of the G20 in scaling up and encouraging wider adoption of social impact investment instruments.
• Crypto-assets Ecosystem: The Members also deliberated on the macroeconomic and financial challenges posed by the crypto-assets ecosystem and exchanged views on potential global policy responses to crypto-assets, taking into account the risks, especially to Emerging Markets and Developing Economies (EMDEs).
• Financial Inclusion: On financial inclusion, discussions focused on leveraging Digital Public Infrastructure (DPI) for financial inclusion and productivity gains.
• Taxation: The Members discussed the need for coordinated efforts toward effective implementation and wider adoption of the two-pillar international tax package.
• The progress achieved during the 2^nd G20 FMCBG meeting will inform the discussions during the 3^rd G20 FMCBG meeting which will be held in July 2023 in Gandhinagar, India, and subsequently the Leaders’ Summit scheduled to be held in New Delhi on September 8-9, 2023.