UAE participates in IMFC meeting

The UAE took part in the International Monetary and Financial Committee (IMFC) meeting, held on the sidelines of the 2023 Spring Meetings of the World Bank Group (WBG) and the International Monetary Fund (IMF) in the US from 10 to 16 April.

The meeting discussed the latest developments in the international monetary and financial system and ways to achieve stability and global economic recovery.

Mohamed Hadi Al Hussaini, Minister of State for Financial Affairs, led the UAE delegation participating in the IMF’s IMFC meeting. Kristalina Georgieva, Managing Director of the IMF, attended the meeting alongside a number of finance ministers from the IMFC member states. Nadia Calviño, Spain’s First Vice President and Minister for Economy and Digitalisation, chaired the session.

Al Hussaini thanked Kristalina Georgieva and stressed the significance of continuous work and constructive coordination with the committee members to achieve economic stability, support low-income countries, maintain growth and prosperity and enhance future readiness.

“The current juncture is difficult for policymakers across the world, as they find themselves faced with significant headwinds. In an environment where public debt is notably high, inflation remains elevated, fiscal space is limited, and monetary policy is rapidly tightening, the post-pandemic recovery is in jeopardy. This is particularly concerning for emerging market and developing economies (EMDEs), including low and middle-income countries.”

Al Hussaini noted that the IMF’s role in sustaining and supporting global recovery is paramount and can be effective through tailored policy advice, flexible financing mechanisms, and enhanced capacity development.

He added, “We believe that expanding accessibility to the Fund’s enhanced lending toolkit, including increased access limits, access to the food shock window, and new policy for lending under exceptional uncertainty, can be pivotal in assisting the membership. We also commend the efforts to accelerate the implementation of the common framework.”

Al Hussaini pointed out that the Resilience and Sustainability Trust (RST) can cover challenges affecting EMDEs, such as climate change and the repercussions of the COVID-19 pandemic, as well as enhance pandemic preparedness. He also reiterated the significance of enhancing private-sector participation.

Al Hussaini concluded his speech by saying that the IMF needs to be strong, quota-based, and adequately resourced to be able to carry out the important tasks that are required of it, especially in the current difficult global environment.

“A timely and successful completion of the 16th General Review of Quotas is essential. This is critical to ensure the IMF’s efficacy and efficiency,” he said in conclusion.