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Jakarta Post

IMFC issues three communiqués, calls for fair trade

  • Stefanno Reinard Sulaiman

    The Jakarta Post

Nusa Dua, Bali   /   Mon, October 15, 2018   /   10:46 am
IMFC issues three communiqués, calls for fair trade Three dancers perform during the closing ceremony of the 2018 Annual Meetings of the International Monetary Fund and World Bank Group in Nusa Dua, Bali on Oct. 14 ( Antara/ICom/AM IMF-WBG/Nicklas Hanoatubun)

The 38th meeting of the International Monetary Fund’s committee (IMFC) issued three key communiqués during the 2018 Annual Meetings of the International Monetary Fund and World Bank Group in Nusa Dua, Bali, over the weekend.

The three communiqués were on the call to refrain from competitive currency devaluations, not to target exchange rates to gain an advantage and to step up dialogue on trade and improve the World Trade Organization.

“We acknowledge that free, fair and mutually beneficial goods and services trade and investment are the key engines for growth and job creation,” said one of the communiqués.

The IMFC also urged countries to produce fiscal policies that would rebuild buffers, ensuring that the debt was under control, and called on central banks to maintain monetary accommodation, particularly to control the inflation.

IMF executive director Juda Agung said on Sunday that the world was facing three global risks -- the United States Federal Reserves’ normalization policy, US and China trade tensions and the upward trend in oil prices.

“Global economic growth is still at 3.7 percent, which is above average. However the risks are higher,” he said.

Therefore, he said, the IMFC urged all countries to strengthen their safeguards, in terms of foreign exchange and fiscal policy, and to immediately kick off or speed up each financial or structural reform as it was important to create resilience against external factors.

The IMFC also highlighted the need to increase the quota of emerging markets in the organization so that they have higher voting power and access to finance. (bbn)