The Meeting of Finance Ministers of G-20 Countries
Nirmala Sitharaman, the newly appointed finance minister, will represent India in the upcoming G-20 finance ministers’ summit. It is expected that this group of nations will arrive at essential strategies to combat the probable economic downturn. International institutions such as the IMF have decreased their forecasts for global economic growth. Hence, this meeting becomes a lot more crucial than previously expected.
Why is this event significant?
All major economies of the world are members of the G-20. So, you can rest assured that the decisions made at this gathering will have a considerable impact on most countries of the world. It is believed that increasing trade between various countries of the world will be one of the significant agendas at this summit. You must know that this will be the first significant event that Ms. Sitharaman will be attending as the finance minister. The governors of the central banks of all the countries are also expected to participate in this gathering. Hence, the governor of the Reserve Bank of India Shaktikantha Das will accompany Ms. Sitharaman.
Times are tough
A high-ranked official from the ministry of finance addressed media to confirm the participation of India and her representatives in this global event. The global economy is under a lot of stress at this moment. If the developed and developing nations fail to address the current state of affairs, then the possibility of a global recession in the economy can’t be denied. The World Bank forecasts, along with the predictions of the International Monetary Fund, seem to be ominous.
Large scale changes are the need of the hour
It has to be accepted that the current times are challenging, but if suitable measures are taken, then the situation can be made better. Large scale changes in global trade laws have become the need of the hour. The manufacturing sector needs to buckle up and make sure that they are on track.
Symbiotic growth is essential
The ministers of finance and central bank governors will have to come to a concrete consensus about the approach that they must take to prevent any substantial economic downturn. At the same time, they must co-operate with each other to balance the trade deficits faced by significant economies of the world, including India and the US.
China’s role is crucial
Some of you may not be aware of the fact that China is the only major economy with a trade surplus. Their exports outweigh their imports by a substantial margin. Other countries of the world need to address this problem. Renminbi- the Chinese Central Bank controls the official currency of China.
Will China go with the flow?
All other countries allow the value of their currency to be decided by the market forces. On the other hand, China chooses the exchange rate of its currency internally. The global economy can receive a significant boost if this situation is redressed. However, the chances of China agreeing to let the global market forces decide their currency’s value is next to negligible. The G-20 countries might make efforts to bring China on board at this gathering.