UAE participates in 2nd International Financial Architecture Working Group meeting within G20 Finance Track for 2023

The UAE participated in the second International Financial Architecture Working Group (IFA WG) meeting within the G20 Finance Track for 2023, which was held in Paris, France, on 30th and 31st March to discuss the progress made on the 2023 IFA WG work plan. G20 members, invited countries, and international organisations attended the meeting. The UAE delegation included Ahmad bin Sulaiman, Director of the Federal Debt Management Office at the Ministry of Finance, and Khalifa Al Faheem, Senior Director of Monetary Operations and Monetary Management at the Central Bank of the UAE. The meeting discussions focused on the priorities of the IFA WG for this year, where members discussed issues related to the sustainability of sovereign debt and ways to limit their increase. Members also deliberated the most proposals and directions to support vulnerable countries, and discussed ways to bridge the gap. Members also discussed the ongoing work by Multinational Development Banks on the implementation of recommendations by the Independent Review on Multinational Development Banks’ Capital Adequacy Frameworks and ways to strengthen Multinational Development Banks to address shared global challenges of the 21st century. Lastly, members shared their views on the impact of climate change-related policies on capital flows. During the meeting, the UAE team stressed on the need for collaborating with regional organisations to leverage their expertise in formulating initiatives that will promote global debt sustainability. The team emphasised the importance of providing incentives for debt transparency to encourage the adoption of enhanced debt management practices in vulnerable countries. The UAE team also discussed the implications of climate change policies on capital flows, and highlighted the importance of promoting greater integration across financial markets and enabling stronger international cooperation to mitigate the potential for market distortions. Accordingly, the UAE team suggested for the international organisations to develop tools and methodologies needed to track the impact of climate change policies on capital flow. The members agreed to review the progress on the groups’ work plan during the next upcoming meeting, at a date to be set by the India G20 presidency.