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Preview of G20 meeting of finance ministers, central bank governors in Shanghai

  • 2016-02-25 15:00:00
  • , Sankei
  • Translation
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(Sankei: February 25, 2016 – p. 2)


 A meeting of the G20 finance ministers and central bank governors will be held in Shanghai, China on Feb. 26-27. The market is watching if China, the host country, will be able to convey a convincing message on its economic structural reform and the extent of policy coordination by Japan and the Western countries.


 The meeting is expected to discuss China’s economic downturn and prospects for structural reform, the rapid decline of oil prices, future U.S. interest rate hikes, and so forth. Emerging concerns about another European financial system crisis in light of the Deutsche Bank’s enormous deficits will also be discussed.


 Prime Minister Shinzo Abe stated at the House of Representatives Committee on Financial Affairs on Feb. 24 that the G20 should discuss “what to do to stabilize the world economy and sustain growth.” He called on China, specifically, to “eliminate excess equipment and work on other structural reforms.”


 The depreciation of the Chinese yuan last summer triggered chaos in the world market. A key issue at the G20 meeting is whether China will make a commitment to implement structural reforms and stabilize the yuan while accepting other G20 nations’ “capital regulation” to contain the outflow of funds from China.


 The G20 will issue a joint statement after the meeting. Will these nations which have propped up the world economy after the Lehman Shock be able to demonstrate their ability to avert market confusion once again? They will be put to the test in terms of coming up with a framework transcending the national interest of individual countries.

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