G7 vows to take ‘necessary measures’ for financial stability

The leaders of the world’s seven most industrialized nations (G7) vowed this Saturday to take “necessary measures” to maintain financial stability and demonstrated flexibility in macroeconomic policies to deal with economic uncertainty.

In a statement released this Saturday, the G7 expressed confidence in the resilience of the financial system despite “multiple shocks” such as the COVID-19 pandemic, the war in Ukraine and inflation, stressing the need to remain vigilant.

The G7 committed to a growth policy that “supports fiscal and price stability over the medium term.”

Countries acknowledged that “inflation remains high,” noting that central banks remain committed to their price stabilization policies.

The multinational forum, which is taking place in Hiroshima, Japan, focused on the transformation of the financial sector, including the digitization of the banking system, which it hopes to consider in more detail in the future.

The most industrialized countries in the world intend to take advantage of digitalization and be aware of the “potential risks”.

The G7 also suggested exploring ways to strengthen the existing financial system following the recent failure of several regional financial institutions in the US and the troubles of Swiss bank Credit Suisse.

Crypto assets are another headache for the group, which believes that “effective oversight, regulation, and oversight are critical” to address risk while supporting “responsible innovation.”

The leaders of the group, which includes Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as well as the European Union, also expressed concern about the “serious problems” of debt sustainability, especially among medium and small countries, and the need to create agencies to respond to potential problems.