"The new initiative that is being discussed is the need for the IMF (International Monetary Fund) to realize common understanding of integrated policies. How can the monetary policies be integrated, so that they will align with the aim of managing stability and supporting global economic growth, including managing capital flows," BI Governor Perry Warjiyo said during a press conference of the second G20 FMCBG meeting monitored from Jakarta on Thursday.
The integrated monetary policies are needed, particularly by developing nations to better prepare for the impact of accelerated policy normalization taken by several central banks and increased inflation caused by the war in Ukraine, he said.
G20 opined that the IMF and Bank for International Settlement (BIS) need to cooperate in discussing and formulating monetary policies by taking into account financial stability since capital flows have an impact not only on monetary stability but also on financial system stability, he said.
Related news: G20 committed to multilateralism despite ministers' walkout: Indrawati
Central banks of G20 countries are expected to normalize monetary policies in a well-calibrated, planned, and communicated manner to allow other countries to anticipate the impact of the policies, he said.
G20 countries are also planning to provide assistance and facilities to G20's less-developed members through the Resilience and Sustainability Trust (RST) Fund initiative.
"The crisis, such as a pandemic, may recur in future, so we need better preparations, particularly for the developing nations, which are hit hardest by the crisis," he said.
G20 member states are also aware of the need to increase quota-based IMF that is being discussed intensively.
Related news: G20 urges World Bank to ready FIF establishment: Indrawati
Translator: Sanya Dinda S, Suharto
Editor: Rahmad Nasution
Copyright © ANTARA 2022
