The Banking Executive Magazine - April 2021

World Bank/IMF Spring Meetings 2021 COMMUNIQUÉ OF THE FORTY-THIRD MEETING OF THE IMFC Chaired by ms. Magdalena anders- son, minister for finance of sweden April 8, 2021 The committee expresses its deep ap- preciation to governor lesetja kganyago for his leadership as imfc chair and welcomes minister mag- dalena andersson as the new chair. We express our sympathies for the loss of human lives caused by the covid-19 pandemic and the suffering it has entailed. We will continue to work together to end the pandemic everywhere and secure a strong, sus- tainable, balanced, and inclusive re- covery. The global economy is recovering from the crisis faster than expected last october, thanks to an unprece- dented policy response and rapid progress in vaccine development. But the prospects for recovery are highly uncertain and uneven within and across countries due to varying policy space, different economic structures and rigidities, preexisting vulnerabilities, and uneven access to vaccines. Elevated financial vulnera- bilities could pose risks, should global financial conditions tighten swiftly. The crisis may cause ex- tended scarring and exacerbate poverty and inequalities, while cli- mate change and other shared chal- lenges are becoming more pressing. We will calibrate our policies and strengthen cooperation to durably exit the crisis. We emphasize the need for strong international cooper- ation to accelerate vaccine produc- tion and support affordable and equitable distribution to all. To that end, we continue to support the work of the world health organiza- tion, the act accelerator collabora- tion, and its covax facility. We will maintain our policy support, tailored to country circumstances, until con- straints on economic activity ease meaningfully, continuing to prioritize health spending and assistance for the most vulnerable, while preserv- ing long-term fiscal sustainability. Where appropriate, monetary policy should remain accommodative, in line with central banks’ mandates. We will continue to monitor and, as necessary, tackle financial vulnera- bilities and risks to financial stability, including with macroprudential poli- cies. We will continue to monitor and cooperate to reduce excessive global imbalances over time through macroeconomic and structural poli- cies that support sustainable global growth. Strong fundamentals and sound poli- cies are essential to the stability of the international monetary system. We remain committed that our ex- change rates reflect underlying eco- nomic fundamentals and note that exchange rate flexibility can facilitate the adjustment of our economies. We will continue to consult closely on foreign exchange market devel- opments. We recognize that exces- sive volatility or disorderly movements in exchange rates can have adverse implications for eco- nomic and financial stability. We will refrain from competitive devalua- tions and will not target our ex- change rates for competitive purposes. We will also strengthen multilateral cooperation to ensure an inclusive and resilient global economy. In line with the paris agreement, we commit strongly to addressing climate change through measures to acceler- ate the transitions to greener societies and job-rich economies, while pro- tecting those adversely affected. These comprise a range of fiscal, market, and regulatory actions, mechanisms, and policy mixes, tak- ing into account country-specific fac- tors. We will continue to collaborate to unlock the potential of the digital economy, and accelerate efforts to- ward a modern and globally fair in- ternational tax system. We reaffirm our commitment to strong gover- nance, including by tackling corrup- tion. We agree on the need to promote more open, stable, fair, and transparent trade policies and to modernize the rules-based trading system under the world trade organ- ization, which are key to boosting global growth. We are taking com- prehensive action to help vulnerable ISSUE 148 APRIL 2021 the BANKING EXECUTIVE 37