The Banking Executive, Issue 155, November 2021

2021 G20 Rome Summit ing the supply of vaccines in devel- oping countries and removing supply and financing constraints. They also promised to “work to- gether towards the recognition of Covid-19 vaccines deemed safe and efficacious by the WHO,” after a complaint during summit talks by Russian president Vladimir Putin about lack of international approval for Moscow’s Sputnik V jab. Global economy Meeting as rising inflation, pushed by spiking energy prices, and supply chain bottlenecks are weighing on a world economy still reeling from Covid-related disruptions, G20 lead- ers ruled out a hasty removal of na- tional stimulus measures. “We will continue to sustain the re- covery, avoiding any premature withdrawal of support measures, while preserving financial stability and long-term fiscal sustainability and safeguarding against downside risks and negative spillovers,” they said. Regarding inflation, they said “cen- tral banks are monitoring current price dynamics closely” and “will act as needed to meet their mandates, including price stability, while look- ing through inflation pressures where they are transitory and remaining committed to clear communication of policy stances.” Finally, G20 leaders pledged to “re- main vigilant to the global challenges that impacting on our economies, such as disruptions in supply chains, (and) monitor and address these is- sues as our economies recover.” Development aid Leaders set a new target of channel- ing $100bn towards poorest nations, coming from the $650bn pot made available by the International Mone- tary Fund (IMF) via a fresh issuance of its Special Drawing Rights (SDR). SDRs are not a currency, but can be used by developing countries either as a reserve currency that stabilizes the value of their domestic currency, or converted into stronger currencies to finance investments. For poorer countries, the interest is also to obtain hard currencies with- out having to pay substantial interest rates. the BANKING EXECUTIVE 36 ISSUE 155 NOVEMBER 2021