Brazil
How to attract longterm investment to emerging markets, the impact of digital innovation on the financial system and how to deal with growing global debt are some of the discussions Brazil plans to deepen as G20 president later this year.
The first meeting with finance ministers and central bank governors of the G20 a group that brings together the world's 19 most important economies alongside the European Union and, from this year, the African Union will take place in São Paulo. next week.
Brazil will be represented at the meeting by Minister Fernando Haddad (Finance) and Roberto Campos Neto, President of the Central Bank.
The confirmed authorities include US Treasury Secretary Janet Yellen, German Finance Minister Christian Lindner and Argentine Economy Minister Luis Caputo.
The head of the Ministry of Finance will give the opening speech on Wednesday (28) in a panel on inequalities based on national experiences and international cooperation measures.
On the first day there will also be a session chaired by Campos Neto to discuss global perspectives on economic growth, employment, inflation and financial stability.
The idea of the meetings is to discuss potential risks to the global economy and the concerns of member countries in the short term, but also to consider more complex issues such as the sustainable energy transition and its distributional effects.
Another priority for Brazil is to discuss alternatives to help indebted countries find fiscal space to promote sustainable economic growth.
On Thursday morning (29), Haddad will lead a panel on international taxation. In a parallel session, central bank representatives will address the financial sector for the 21st century, including continuing the debate on improving crossborder payments.
One of the contours that the discussion may take over the course of the year is the link between instant payment systems such as Pix and central bankcreated digital currencies (CBDCs) in terms of their possible macroeconomic and capital market implications. .
In December 2023, Campos Neto said the BC would work jointly with G20 global authorities to begin drafting a framework for international payments.
“One of the things we want to do at the G20 summit is a taxonomy of international payments. “I am working with the President of the Italian Central Bank, Fabio Panetta, so that we can draft a set of rules,” he said.
“Once we solve the technology and settlement problem, which is international payments management, countries that want to participate will have to more or less abide by these rules,” he added.
The final session, chaired by the Minister of Finance, will address practices for dealing with global debt and financing sustainable development.
Brazil defends the need to make multilateral development banks more effective and makes it a priority to identify vulnerabilities in payment systems and promote capital flows to emerging and developing countries.
At the end of the first meeting of G20 foreign ministers under the Brazilian chairmanship in Rio de Janeiro, Foreign Minister Mauro Vieira said all participants agreed that multilateral institutions “need to be reformed to adapt to the challenges of the current world.”
The Chancellor also stated that there was consensus on the need for reform of the UN (United Nations), particularly the Security Council. The challenge, however, lies in the different proposals for achieving this goal.
Next week, Brazilian authorities will work on the statement that will be released at the end of the ministeriallevel meeting of the G20 Finance Track.
The aim of the text is to highlight the priorities of the G20 chaired by Brazil and the main points addressed by the participants during the year.
According to government sources Luiz Inácio Lula da Silva (PT), attempts are being made to avoid mentioning the wars between Israel and Hamas and between Russia and Ukraine. Geopolitical tensions should only be mentioned in the context of risks to the global economy.
In addition to the official G20 engagements, Haddad will also take the opportunity to hold a series of bilateral meetings in São Paulo.
One of them is with the Director General of the IMF (National Monetary Fund), Kristalina Georgieva, to talk about the debt of poor countries and reform of the multilateral body.
Another program is a meeting with former President Dilma Rousseff, who heads the NBD (New Development Bank), better known as Brics Bank. Before that, the minister will meet with the governors of the NBD.
Two appointments (one public and one closed) with Yellen, the US Treasury Secretary, are also planned, as well as meetings with finance ministers from several countries, including France, Russia, Portugal, Saudi Arabia and Norway.
Haddad is also meeting with economic ministers from African countries South Africa, Angola, Nigeria, Egypt and the African Union (the bloc's debut as a permanent member). The meeting is in line with Lula's initiative to achieve greater participation of the continent in the G20.