Ahead of the G-7 summit in France this weekend, a senior US Treasury Official said on Wednesday that the meeting should be viewed as part of global efforts to bolster confidence and economic growth, which will hinge on the steps taken by the G-20 nations.
“Only by working together in the G-20 can we deliver the strengthened growth, job creation and financial market resilience that our citizens deserve,” the senior Treasury official said.
However, the Treasury official, who spoke on condition of anonymity, also said emerging economies have a key role to play in reinforcing the global economy.
“As advanced economies rebuild their balance sheets, the world looks to emerging markets with large surpluses to step up their efforts to boost consumption and for a transition to domestic demand-led growth,” the official said.
In this regard, he said said China has the capacity to unlock broader adjustment in emerging markets for convergence with global economic goals by allowing its exchange rate to adjust more rapidly in sync with international currency movements.
“China, in particular, has the capacity to unlock broader adjustment in emerging markets by allowing its exchange rate to adjust more rapidly, which will also address domestic inflationary pressures and bolster domestic consumers, services producers and private enterprise,” said the Treasury official.
“The courage of the people of the Middle East and North Africa has catalysed one of the most important transitions of our time.
“The Deauville partnership meeting on Saturday will bring together key regional and global partners committed to supporting this historic transition toward democracy and more inclusive economies in the Middle East and North Africa, recognising that now is the moment for the region and the world to work together to support the legitimate aspirations of the people in this region for greater freedom and opportunity,” he said.
“We expect finance ministers from the G-8 to be joined by those from Saudi Arabia, Turkey, Kuwait, the Emirates, Qatar, Egypt, Jordan, Morocco and Tunisia and the heads of nine international regional financial organisations will also attend.
“We also hope to welcome for the first time a representative of Libya as they start the process of rebuilding their country,” the official said.
“The (Treasury) Secretary’s participation in the Deauville Partnership ministerial underscores America’s commitment to people in the Middle East and North Africa as they build their democracies and create more inclusive societies,” he said.