UAE attends Monetary and Financial Committee meeting

Mohamed Hadi Al Hussaini led the UAE delegation to the IMFC meeting.

The UAE, represented by the Ministry of Finance, participated in the meeting of the International Monetary and Financial Committee (IMFC) on the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in Washington, D.C. .

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

Mohammad Hadi Al Husseini, Minister of State for Finance, led the UAE delegation to the IMF’s International Monetary and Financial Committee meeting. IMF Managing Director Kristalina Georgieva attended the meeting along with finance ministers from IMFC member countries. Nadia Calvinho, Spain’s First Vice President and Minister of Economy and Digitalization, chaired the meeting.

Husseini thanked Kristalina Georgieva and emphasized the importance of continued work and constructive coordination with Committee members to achieve economic stability, support low-income countries, maintain growth and prosperity, and strengthen future readiness .

“These junctures are difficult for policymakers around the world as they find themselves facing significant headwinds. In an environment of high public debt, persistently high inflation, limited fiscal space, and rapid monetary policy tightening , the post-pandemic recovery is in jeopardy. This is especially important for emerging market and developing economies (EMDEs), including low- and middle-income countries.”

Husseini pointed out that the IMF’s role in sustaining and supporting the global recovery is crucial and can play a role through tailored policy advice, flexible financing mechanisms and enhanced capacity building.

He added: “In our view, expanding access to the IMF’s enhanced lending toolkit, including increased access restrictions, access to the food shock window, and new lending policies in times of exceptional uncertainty, would be important to assist member countries could be crucial. We also applaud efforts to expedite the implementation of the Common Framework.”

Al Hussaini noted that the Resilience and Sustainability Trust (RST) can address challenges affecting EMDEs, such as climate change and the impact of the COVID-19 pandemic, and strengthen pandemic preparedness. He also reiterated the importance of strengthening private sector participation.

Al Hussaini concluded his speech by saying that the IMF needs to be strong, quota-based and well-resourced to be able to carry out the important tasks it is being asked to do, especially in the current difficult global environment.

“The timely and successful completion of the 16th General Review of Quotas is critical. This is critical to ensuring the effectiveness and efficiency of the IMF,” he concluded.

Meanwhile, Mohammad Hadi Al Husseini, Minister of State for Fiscal Affairs, also led the UAE delegation to the second meeting of Finance Ministers and Central Bank Governors of the G20 Financial Track in 2023 on the sidelines of the 2023 Summit (FMCBG) The Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) will be held April 10-16 in Washington, DC.

The meeting was held to review the progress made on the financial track and discuss G20 members’ views 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, Central Bank of the UAE; Younis Haji Al Khoori, Deputy Minister of Finance; Hamad Al Zaabi, Head of the Office of the Minister of State, Ministry of Finance; Thuraiya Hamed Al Hashmi, Director General, International Tax Department, Ministry of Finance; Fares AlKaabi, Senior Analyst, Research and Statistics Department, Central Bank of the United Arab Emirates. Finance ministers and central bank governors of G20 member countries, invited countries, international organizations and institutions attended the meeting.

During the meeting, Al Hussaini reiterated the importance of considering the different circumstances of the group of low- and middle-income countries to address global debt vulnerabilities.

On climate change, Husseini advocated strengthening multilateral cooperation to promote a coordinated response to the macroeconomic impact of climate change and to facilitate the exploration of opportunities to address climate risks. “Collaboration between the G20 and COP28, to be hosted by the UAE in Dubai Expo City in November, will be key to laying a solid foundation for delivering actionable insights to address the macroeconomic impacts of climate change,” he said.