Saudi Arabian officials have made a plea to the International Monetary Fund (IMF) to concentrate on its primary responsibilities, highlighting the significance of supporting initiatives aimed at reconstructing safeguards and reassessing debt and lending policies.
Speaking at the International Monetary and Financial Committee Plenary session during the Spring Meetings of the World Bank Group and IMF 2024, Saudi Central Bank governor Ayman Al-Sayari cautioned about the necessity to be alert to risks in the financial sector.
The governor called attention to the need for vigilance in the face of ongoing challenges, mentioning the growing disparity in growth, subdued prospects for medium-term development, concerns over food security, and heightened debt vulnerabilities.
“In this rapidly changing world, the IMF should review its policies, as needed, to ensure their continued relevance and effectiveness. Given significant heterogeneity across the membership, the importance of delivering tailored policy advice as part of surveillance and program engagement cannot be overemphasized,” he said.
Al-Sayari further mentioned that the IMF’s surveillance should be flexible to adapt to the changing economic and financial conditions.
He underscored the criticality of integrating macro-financial analysis into bilateral surveillance, including the study of financial spillovers and the impact of volatile capital flows on stability in Emerging Markets and Developing Economies (EMDEs).
The governor welcomed the Managing Director’s Global Policy Agenda, presented at the IMF Spring Meetings, which outlines the policy challenges facing member countries and the ways the IMF can offer assistance.
Al-Sayari also pointed to the resilience of the global economy amidst challenging conditions such as stringent monetary policies, increasing fragmentation, and a slowdown in global trade.
To counter the negative impacts of economic threats, he strongly endorsed multilateralism and the promotion of a fair and open international trade system to boost global stability and inclusivity.
Highlighting Saudi Arabia’s robust economy, the governor emphasized the nation’s active involvement with relevant organizations to aid in the stabilization of financial systems within the region.
Meanwhile, Saudi Minister of Finance and IMFC Chair, Mohammed Al-Jadaan, stressed on social media that while IMFC members recognize the profound effects of various crises on the global economy, the committee is not the proper forum for addressing geopolitical and security issues, suggesting these topics be tackled in alternative settings.
Al-Jadaan emphasized that the IMFC’s mandate is to offer advice and report on the management of the international monetary and financial system, including responses to events that may disrupt this system. He concluded by advocating for a focus on vigilance and preparedness in the face of the remaining challenges and called for an era free of war and conflict.