Washington: Even as the recovery is broadening and becoming more self-sustained with increasingly robust private demand growth, downside risks remain in the global economy, the G-20 countries said on Friday.

After the meeting of Finance Ministers and Central Bank Governors, the group comprising most influential economies in the world, issued a joint communiqué in which they agreed to remain vigilant and take necessary actions to reduce risks to the global recovery.

To strengthen the international monetary system, the club agreed to focus their work in the short run, on assessing developments in global liquidity, country specific analysis on drivers of reserve accumulation, strong coordination to avoid disorderly movements and exchange rates misalignments, and adoption of criteria for broadening the composition of SDR.
 
“We also agreed on the need to strengthen further the effectiveness and coherence of bilateral and multilateral IMF surveillance, particularly on financial sector coverage, fiscal, monetary and exchange rate policies,” it said.

While observing that events in Middle-East and North African region (MENA) and in Japan have increased economic uncertainty and tensions in energy prices, the communiqué noted there was adequate spare capacity to meet global energy demand.

 Further, acknowledging the seriousness of commodity prices, the communiqué welcomed the work of international organizations on their report to address excessive price volatility in food and agricultural markets, and its impact on food security.
 
Stressing on the need for appropriate regulation and supervision of participants in commodity derivatives markets, it called for enhanced transparency in both cash and derivatives markets as previously recommended by IOSCO.

The club asked IOSCO to finalize, by September, its recommendations on regulation and supervision in this area especially to address market abuses and manipulation, such as through formalized position management powers including the authority to set ex-ante position limits where appropriate among other powers of interventions.

G-20 countries also agreed to intensify their efforts against corruption.
 “We agreed to maintain momentum for action to tackle non-cooperative jurisdictions and to fully implement the G20 anti-corruption action plan,” it said.

(Agencies)