G20 Promises To Stabilize The Financial Market &Nbsp, And Supply Liquidity When Necessary.

The finance ministers and central bank governors meeting of the group of twenty (G20) issued a joint statement in Washington on 22 th local time, saying that they will work to take international coordinated actions to deal with the challenges facing the global economy and ensure the stability of the banking system and financial market.

The meeting was held from 22 to 24 in Washington.

The joint statement released on the day of the meeting pointed out that the current global economy is facing challenges from the sovereign debt crisis, the fragile financial system, market turbulence, economic growth and the high unemployment rate. The group of twenty is committed to promoting fiscal consolidation and promoting strong, sustainable and balanced growth of the economy.

The statement said that the group of twenty will take the necessary measures to maintain stability in the banking system and financial markets. If necessary, central banks will continue to provide liquidity to the banking industry to ensure that banks have sufficient capital; the group of twenty finance ministers and central bank governors are working out a coordinated action plan for the group of twenty summit to be held in Cannes, France.

At present, the market is worried that European banks are under the impact of the European debt crisis.

According to international

Lagarde, President of IMF, 22, urged European policymakers to ensure that banks have enough capital to support economic growth.

IMF has repeatedly suggested that European banks should restructure their assets as soon as possible.

Baroin, chairman of the finance ministers of the group of twenty and chairman of the central bank, and French finance minister, said that the EU will take the necessary action in October to improve the flexibility of the European financial stability fund (EFSF), maximize the role of EFSF and prevent the spread of the European debt crisis.

Alan Bokobsa, chief executive of global asset allocation at faxing bank, told China Securities Daily (micro-blog) that the plan to expand EFSF will eventually be formally approved by the European Union's national law institutions at the end of the year, and that the fund will play a significant role in restraining the European debt crisis.

Baru'an said that the plan to bring the renminbi into the International Monetary Fund (IMF) special drawing rights (SDR) basket of currencies is advancing.

Greg Gibbs, a currency strategist at Royal Bank of Scotland, believes that there are expectations for the meeting of the finance ministers of the group of twenty and the central bank governor on the weekend. But it is expected that the conference is unlikely to introduce substantive measures to save the market in addition to expressing its willingness to take action.

BRICs holding support when necessary to maintain global financial stability.

The joint press reported by the finance ministers and central bank governors of the BRICs (China, Brazil, Russia, India and South Africa) held in Washington on 22 May said that the market's concern over the accumulation of sovereign debt and the medium-term fiscal adjustment plan of developed countries increased the uncertainty of the global economic growth, and developed countries should adopt responsible macroeconomic policies to avoid global flooding.

The meeting said that the BRIC countries are open to the current challenges of maintaining global financial stability by providing support to the International Monetary Fund or other international financial institutions, if necessary, according to their respective national conditions.

The meeting held that, despite the rapid recovery of the BRICs from the global financial crisis, the prospect of economic growth is constrained by the global market instability, and some members are facing inflationary pressure.

China's finance minister Xie Xuren and governor of the people's Bank of China Zhou Xiaochuan attended the meeting.

The Chinese side said in its speech that BRIC countries should adopt flexible and effective macroeconomic control measures in accordance with their respective national conditions in order to cope with the impact of inflation and cross-border capital flows, accelerate the pace of structural adjustment, and promote stable and rapid growth of their respective economies.

We should further strengthen macroeconomic policy exchange among members, deepen trade, investment and financial cooperation, grasp the way, scope and impact of crisis conduction in a timely manner, and enhance the ability to deal with external shocks and resist risks.

We should make effective use of the group of twenty and other mechanisms to strengthen policy coordination among major economies, urge the major developed countries to maintain financial stability and economic recovery, handle the relationship between short-term economic growth and medium-term fiscal consolidation, properly solve sovereign debt problems, reduce negative spillover effects of policies, and make more tilting of international financial resources to low-income developing countries, thus creating a favorable external environment for the economic development of developing countries.

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