Statement by IMF Managing Director Christine Lagarde on G-20 Ministerial Meeting in Moscow
Christine Lagarde, Managing Director of the International Monetary Fund (IMF), issued the following statement today after the conclusion of the Group of 20 Finance Ministers and Central Bank Governors meeting in Moscow:
I would like to thank the Russian authorities for hosting us, including President Vladimir Putin, Finance Minister Anton Siluanov, and Bank of Russia Governor Sergey Ignatiev. They were instrumental in facilitating discussions among G-20 ministers and governors on the significant challenges facing the world economy, and helped everyone to continue deliberations over policy actions needed to strengthen the global economic recovery.
As emphasized by the G-20, global growth is still weak, with unemployment remaining unacceptably high in many countries. The weak global performance derives from policy uncertainty, private deleveraging, continued fiscal drag, as well as insufficient progress on rebalancing global demand. Implementation of the financial reform agenda to build a more resilient financial system remains a priority. Credible medium-term fiscal plans also need to be in place to provide flexibility while growth is more fully restored.
I welcome G-20 resolve to achieve a lasting reduction in global imbalances through joint actions to avoid persistent exchange rate misalignments, and the groups commitment to refrain from competitive devaluation, to resist protectionism in all forms, and to keep markets open. It was heartening to see the G-20 reaffirmed its commitment to move more rapidly toward more market-determined exchange rate systems and exchange rate flexibility to reflect underlying fundamentals.
We think that talk of currency wars is overblown. People did talk about their currency worries. The good news is that the G-20 responded with cooperation rather than conflict today.
Lastly, I welcome G-20 support for completing the 2010 quota reform agreement, and I urge countries to quickly ratify the measures necessary to implement this important agreement. The G-20 continues to demonstrate its interest in global economic cooperation through the IMF. I know that the 188 member countries of the Fund are committed to reaching agreement on the 15th General Review of Quotas, including a new quota formula, by January 2014.
Many of the key issues discussed today will be reviewed at the Funds International Monetary and Financial Committees spring meeting in April, and at the next G-20 ministerial meeting, which will take place at roughly the same time in Washington. Until then, it is crucial that all countries continue efforts to strengthen global recovery.