UAE participates in the monetary and financial committee meeting

The UAE, represented by the Ministry of Finance, participated in the International Monetary and Financial Committee (IMFC) meeting, which was held on the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC from the April 10th to 16th.

The meeting discussed the latest developments in the international monetary and financial system and ways to achieve stability and global economic recovery.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, led the UAE delegation participating in the IMF’s IMFC meeting. Kristalina Georgieva, Managing Director of the IMF attended the meeting, alongside a number of finance ministers from the IMFC member states. Nadia Calviño, Spain’s First Vice President and Minister for Economy and Digitalisation chaired the session.

Al Hussaini thanked Kristalina Georgieva and stressed on the significance of continuous work and constructive coordination with the committee members to achieve economic stability, support low-income countries, maintain growth and prosperity and enhance future readiness.

“The current juncture is difficult for policymakers across the world, as they find themselves faced with significant headwinds. In an environment where public debt is notably high, inflation remains elevated, fiscal space is limited, and monetary policy is rapidly tightening, the post-pandemic recovery is at jeopardy. This is particularly concerning for emerging market and developing economies (EMDEs), including low and middle-income countries.”

Al Hussaini noted that the IMF’s role in sustaining and supporting the global recovery is paramount, and can be effective through tailored policy advice, flexible financing mechanisms, and enhanced capacity development.

He added, “We believe that expanding accessibility to the Fund’s enhanced lending toolkit, including increased access limits, access to the food shock window, and new policy for lending under exceptional uncertainty, can be pivotal in assisting the membership. We also commend the efforts to accelerate the implementation of the common framework.”

Al Hussaini pointed out that the Resilience and Sustainability Trust (RST) can cover challenges affecting EMDEs, such as climate change and the repercussions of the COVID-19 pandemic, as well as enhancing pandemic preparedness. He also reiterated the significance of enhancing private sector participation.

Al Hussaini concluded his speech by saying that the IMF needs to be strong, quota-based, and adequately resourced to be able to carry out the important tasks that are required from it, especially in the current difficult global environment.

“A timely and successful completion of the 16th General Review of Quotas is essential. This is critical to ensure the IMF’s efficacy and efficiency,” he said, in conclusion.

Meanwhile Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, also led the UAE delegation to the Second Finance Ministers and Central Bank Governors (FMCBG) meeting of the Finance Track of the G20 for 2023, which was held on the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, DC from April 10th to 16th.

The meeting was held to review the progress made by the Finance Track and discuss the views of the G20 members on the priorities and goals set by the Indian presidency for this year.

The UAE delegation included Ebrahim Al Zaabi, Assistant Governor for Monetary Policy and Financial Stability at the Central Bank of the UAE; Younis Haji Al Khoori, Under-Secretary of Ministry of Finance; Hamad Al Zaabi, Director of the Office of Minister of State for Financial Affairs; Thuraiya Hamed Al Hashmi, Director of International Tax Department at the Ministry of Finance; and Fares AlKaabi, Senior Analyst, Research and Statistics Department at the Central Bank of the UAE. The meeting was attended by Ministers of Finance and Central Bank Governors from G20 member countries, invited countries, and international organisations and institutions.

During the meeting, Al Hussaini reiterated the importance of considering the different circumstances of low- and middle-income country groups in order to address global debt vulnerabilities.

On climate change, Al Hussaini advocated for greater multilateral collaboration to facilitate coordinated responses to the macroeconomic implications of climate change and to facilitate exploration of opportunities to address climate risks. “The collaboration between the G20 and COP28, which will be hosted by the UAE at Expo City Dubai in November, will be key to establish a strong foundation for providing actionable insights to address the macroeconomic effects of climate change”, he said.