The Third G20 International Financial Architecture Working Group Meeting (IFA WG) under the Indian Presidency concluded in Goa on June 7, 2023. The two-day meeting saw the participation of approximately 100 delegates from G20 member countries, invitee countries, and various international organizations, including multilateral development banks (MDBs). The meeting was jointly steered by the Ministry of Finance and the Reserve Bank of India along with France and Korea, the Co-chairs of the IFA WG.
The meeting saw detailed deliberations on the key priority areas of the IFA WG, which include strengthening MDBs to address shared global challenges of the 21st century; managing global debt vulnerabilities; strengthening the Global Financial Safety Net (GFSN); following up on the IMF’s general SDR allocation; strengthening financial resilience through sustainable capital flows; and assessing the macro-financial implications of Central Bank Digital Currencies (CBDCs).
Members recognized the need for MDBs to strengthen and evolve to address transboundary challenges. There was a shared understanding among members on the urgency to address debt vulnerabilities and find pragmatic solutions to strengthen coordinated policy action to address the worsening debt situation. Members also discussed how climate change-related policies can impact capital flows and the macro-financial impact of the widespread adoption of Central Bank Digital Currencies (CBDCs) on the international monetary system.
On the sidelines of the meeting, a seminar was held on “Towards Orderly Green Transition – Investment Requirements and Managing Risks to Capital Flows” on June 6, 2023. The seminar facilitated enriching panel discussions on the current issues linked to risks associated with capital flows from climate transition policies.
The G20 delegates also experienced the cultural richness and diversity of India with flavors of Goan culture and culinary hospitality. An excursion was organized for the delegates to UNESCO heritage monuments of Old Goa. They visited the Basilica of Bom Jesus and the Museum of Christian Art. A tour was arranged to Fontainhas and Sao Tome wards of Panjim’s Latin Quarters. A Yoga session was also organized for the delegates on the sidelines of the meeting.
Discussions from the meeting will help in finalizing the key deliverables of the IFA WG that will be submitted to the G20 Finance Ministers and Central Bank Governors (FMCBGs) for endorsement during their Third meeting scheduled to be held on 17-18 July 2023 in Gandhinagar.