26 September 2022: The UAE recently participated in the fifth International Financial Architecture (IFA) Working Group meeting within the G20 Finance Track for 2022, which was held in a hybrid format on 22 and 23 September 2022.
The meeting, which was held under the G20 Indonesian Presidency, discussed issues related to global financial development and stability with highlights on the global financial resilience, capital flows and global financial safety net. It also sought to deliberate key financial issues related to global financial risks and opportunities.
Asma Alzarooni, Head of Exchange of Tax Information Section at the Ministry of Finance, and Khalifa AlFaheem, Director Monetary Operations at Central Bank of the UAE participated in the meeting, along with G20 members, invited countries, representatives from international organisations including the World Bank, the International Monetary Fund (IMF), and the Organisation for Economic Co-operation and Development (OECD).
During the meeting, the UAE team reviewed the country’s key financial stability components and developments. The team also stressed on the need to work on a comprehensive regulatory framework for central digital currencies that would facilitate, accelerate, and reduce the cost of cross-border monetary operations. That, in addition to previewing the UAE’s experience in the “mBridge” project for building multi central bank digital currencies (CBDC). The UAE team also pointed out the key role played by the issuance of local currency bonds (T-bonds) in light of the continued rise in global debt and the need to enhance the monetary sustainability of low-income countries.
The meeting previewed the latest updates on global development finance and sovereign debt related issues. The attendees also discussed central bank digital currencies for cross-border payment and implication on the international monetary system and capital flows. They also deliberated the expected benefits of local currency bond markets and the multicurrency settlements in international trade and finance agreements. Additionally, they explored potential cooperation opportunities among international organisations regarding capital flows, as well as ways to improve debt transparency and information sharing including the current stock-taking exercise on debt transparency shared with the IMF and the World Bank. The newly developed capital adequacy framework assessment and next steps to achieve tangible progress were also deliberated during the meeting.
At the end of the meeting, the members and representatives from international organisations agreed to present the group’s contribution during the upcoming G20 Finance Ministers and Central Bank Governors meeting in October 2022. They also agreed to continue the discussion based on the latest global financial developments, in preparation for India’s forthcoming G20 Presidency in 2023.–