Middle-East conflict raises fuel price concerns, says FM Sitharaman

Finance Minister Nirmala Sitharaman has said that the recent Middle Eastern crisis, fuel prices, and fragmentation of global supply chains remain major concerns for emerging markets.

"The recent Middle-Eastern crisis, fuel prices, and fragmentation of global supply chains remain major concerns for emerging markets," the Finance Minister said while addressing the G20 Presidency 4th Finance Ministers and Central Bank Governors (FMCBG) Press Briefing at the Media Centre in Marrakech, Morocco.

Sitharaman is on an official visit to Marrakech, Morocco, to attend the IMF-World Bank Annual Meetings 2023.

The Finance Minister on Thursday held discussions with US Treasury Secretary Janet Yellen on the policy priorities of the International Monetary Fund (IMF) and how the institution should support its membership.

The two met on the sidelines of the ongoing IMF-World Bank Annual meetings in Marrakech, Morocco, the Union Ministry of Finance informed.

In her intervention, Sitharaman spoke about IMF's mandate and lending policies, a strong, quota-based, and adequately resourced IMF, Poverty Reduction and Growth Trust (PRGT) Financing and IMF Governance reforms.

In her address, she also highlighted the role of IMF in addressing debt restructuring process bottlenecks and fostering cooperation on debt issues, including through co-chairing the Global Sovereign Debt Roundtable (GSDR) with India and the World Bank, according to the Finance Ministry.

The roundtable discussion was hosted by US Treasury Secretary Yellen.A high-level seminar on "Strengthening the Financial Capacity of MDBs" was also organised by the G20 India Presidency.

Sitharaman drew attention to India's G20 Presidency's focus on the importance of multilateralism to move towards coordinated and consensus-based solutions to global challenges and also highlighted that in line with the evolving needs of the membership, the IMF's primary focus needs to be macroeconomic surveillance and policy guidance.

The participants during the seminar deliberated on various options to enhance multi-lateral development banks (MDBs) financing and how these options can be implemented most effectively across the MDBs.

The Union Finance Minister also underscored the importance of the IMF to remain well-capitalised through quota-based resources to remain central to the global financial safety net.ANI