South African Central Bank governor calls for global cooperation to tackle economic problems

Johannesburg, Dec 12 (IANS) South African Reserve Bank Governor Lesetja Kganyago said Thursday that it is time to prioritize the implementation, take stock of progress made, and agree on how to accelerate progress toward the 2030 Sustainable Development Goals.

Kganyago made the remarks at the G20's first Sherpa-Finance and Central Bank Deputies' Meeting held in the north of Johannesburg Thursday. With all the challenges the global economy was grappling with, he said this wouldn't be easy, particularly in the current global environment.

"It won't be easy, particularly in a global environment of geoeconomic fragmentation, escalating conflicts, and intensifying climate change. The spillovers from these risks are expected to further hamper progress and have a disproportionate impact on those countries that can least afford it," Kganyago noted.

He also explained that while South Africa's key goal for its G20 presidency was based on the theme of "solidarity, equality, and sustainability," the country wanted to "reinvigorate" the spirit of multilateralism within the G20 finance, Xinhua news agency reported.

Talking about the global market since the 2008 economic crisis, Kganyago noted that the establishment of the Financial Stability Board (FSB) in the 2009 G20 Pittsburgh Summit has been beneficial for the world.

"In the short period of its existence, the Financial Stability Board stands out as one of the G20's most durable accomplishments. Despite a series of shocks, such as the COVID-19 pandemic, the March 23 market turmoil, and banking crises and regional conflicts, the global financial system has remained broadly resilient, and macroeconomic shocks have been largely contained," he stated, highlighting that the FSB has played a crucial role in promoting global financial stability.

Kganyago also emphasized that South Africa's G20 presidency presents an opportunity to review the FSB's work over the past 15 years and identify practical solutions to enhance implementation and ensure the continued resilience of the global financial system.

"This reflects genuine global cooperation to address emerging risks and vulnerabilities and protect the public good, which is global financial stability," he added.

Since South Africa assumed the G20 presidency on Dec. 1, it has been hosting the first Sherpas-Finance and Central Bank Deputies' Meeting since Monday, which will come to an end Thursday. The next meeting is scheduled to take place in Cape Town in February 2025.

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