NUSA DUA (BALI) - Wide-ranging reforms are needed to reset the global financial system and make it work amid turbulent times, an international panel of top economists and leaders said on Friday (Oct 12). The Group of 20 (G-20) Eminent Persons Group on Global Financial Governance, in a report issued at the annual meetings of the International Monetary Fund and World Bank, underlined that the open and competitive world order of the past 70 years has lifted many out of poverty and fostered unprecedented peace. But the system of international governance and cooperation that underpins it is fraying, and there is a real risk of drift into a fragmented world, in which all nations would end up losing, it said. "There is no going back to the old multilateralism. There is no single conductor. There are already many more orchestras in play," said the panel. "The world needs a new harmony." There must arise a new, cooperative international order that will help nations achieve stronger, more … [Read more...] about G-20 panel led by Tharman issues call to reset global financial governance to better tackle current challenges
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PARIS: Too much debt has made the world's financial system as vulnerable as it was 10 years ago, Europe's top central banker during the 2008 global meltdown has warned as he looks back on the crisis."There is now agreement that the excessive debt level in advanced economies was a key factor in the triggering of the global financial crisis in 2007 and 2008," Jean-Claude Trichet, who ran the European Central Bank between 2003 and 2011, said in an interview."The growth in debt, especially private debt, in advanced countries has slowed, but this slowdown has been offset by an acceleration of emerging country debt," said Trichet, a Frenchman who ran his country's central bank, the Banque de France, before taking the helm at the ECB."This makes the entire global financial system at least as vulnerable as it was in 2008, if not more so."Trichet was only the second president at the ECB, which was barely a decade old when US bank Lehman Brothers collapsed in September 2008, a date widely seen … [Read more...] about Global finance ‘as vulnerable’ as in 2008: Ex-ECB chief
All eyes are on the Turkish lira. Its decline has been precipitous – it has already lost more than 40% of its value against the US dollar this year. For Turkey, which has relied on the inflow of foreign credit, this poses terrible risks. Enormous debt coupled with a vicious attack for political reasons on the Turkish economy by the US government has pushed Turkey toward the precipice. Will Turkey’s descent take Europe with it and then, certainly, other middle-income countries? Is this the harbinger of a new global financial crisis that would be far more dangerous than the one in 2007-08? The dailyReport Must-reads from across Asia - directly to your inbox Financial instability The credit crisis of 2007-08 has not really ended. The problems posed by the collapse of the US housing market and the subsequent debt problems in world banking have not been fixed. Sober recommendations from the Basel Committee on Banking Supervision as well as from the International … [Read more...] about Could Turkey trigger the next global financial crisis?
Global finance chiefs will be back in crisis-management mode this week as the Group of Seven grapples with the market shock waves from Italy’s political woes. Finance ministers and central bankers from the G-7 nations -- who oversee almost half of the global economy -- begin three days of meetings at the Canadian ski resort town of Whistler, British Columbia on Thursday hoping to stomp out a series of brush fires breaking out across the global economy. The officials will be under pressure to show support for Argentina’s reform efforts, downplay the Italian crisis and commit to stemming the spillover effects from political instability. It’s a more volatile picture than only a couple weeks ago, when US Treasury Secretary Steven Mnuchin’s declaration of a trade truce with China looked to have removed one of the biggest sources of uncertainty over a broad global upswing. Since then, President Donald Trump has recommitted to slapping tariffs on Chinese imports and … [Read more...] about Finance chiefs face fresh crisis worries amid turmoil in Italy
PHUKET MEDIA WATCH – World news selected by Gazette editors for Phuket’s international community BRICS set up bank to counter Western hold on global finances Reuters / Phuket Gazette PHUKET: Leaders of the BRICS emerging market nations launched a $100-billion (58.32 billion pounds) development bank and a currency reserve pool on Tuesday in their first concrete step towards reshaping the Western-dominated international financial system. The bank aimed at funding infrastructure projects in developing nations will be based in Shanghai and India will preside over its operations for the first five years, followed by Brazil and then Russia, leaders of the five-nation group announced at a summit. They also set up a $100 billion currency reserves pool to help countries forestall short-term liquidity pressures. The long-awaited bank is the first major achievement of the BRICS countries since they got together in 2009 to press for a bigger say in the global financial order created by … [Read more...] about BRICS set up bank to counter Western hold on global finances