Strategic session «Monetary and Financial Cooperation Issues of the World Majority»
UPCOMING EVENTS
Date and time: April 10, 2024 at 15:00
Place: HSE building on Pokrovsky Boulevard, F-301
On April 10, the HSE University will host a strategic session «Monetary and Financial Cooperation Issues of the World Majority» of the BRICS Expert Council-Russia.
Place: HSE building on Pokrovsky Boulevard, F-301
On April 10, the HSE University will host a strategic session «Monetary and Financial Cooperation Issues of the World Majority» of the BRICS Expert Council-Russia.
The BRICS Expert Council–Russia was established according to the decision of the Government of the Russian Federation at HSE University at the initiative of the Ministry of Foreign Affairs and the Ministry of Finance of the Russian Federation. The Council will be engaged in expert, analytical and scientific activities on current issues of political, socio-economic, and humanitarian cooperation within BRICS.
In the aftermath of the global financial crisis, amid extremely low interest rates, compressed volatility, and ample liquidity, market participants increased their exposures to liquidity, duration, and credit risk, often employing financial leverage to boost returns. Emerging market banks appear to have avoided significant losses in their securities portfolios so far, while deposit funding has been stable. In emerging market economies, progress on lowering inflation is more apparent than in many advanced economies, though there are discrepancies across regions. Widening divergence of inflation and economic outlook could mark the beginning of the desynchronization of global monetary policy.
The international financial system is opening up to greater complexity of financial instruments, trading strategies and tactics. The globalization of finance has led to reduced transparency, less effective market discipline, more rapid and volatile market dynamics. Clear communication about central banks’ objectives and policy functions will be crucial to avoid unnecessary uncertainty. Against the backdrop of the negative factors on the global financial market, the economies of the World Majority need resilient dialogue and exchanges. The enhancement of the international system becomes a task of paramount importance. In this respect, BRICS Interbank Cooperation Mechanism continues serving as an effective cooperation platform. The grouping welcomes financial dialogue in the format of BRICS+, including with such countries as Alegiria. For Algeria, diversifying its international ties is also an issue of strengthening economic resilience. Under the Russian BRICS Chairship in 2024, the Bank of Russia set out a number of financial track priorities, namely development of the mechanism of the BRICS Contingent Reserve Arrangement, payment interaction, information security of the financial sector, and use of financial technologies among other aspects.
Discussion questions:
- How could BRICS+ countries ease market participants' exposure to credit risks?
- With the expansion of BRICS, what further steps should be done to increase financial inclusion across the grouping and the World Majority at large?
- How could BRICS further increase the proportion of national currencies in mutual settlements?
- Is it feasible for BRICS to jointly develop and exchange financial technology to improve the provision of financial services?
Mr. Ali Benouari, Ex-Minister of Treasury, former Expert of National Debt Committee and Advisor to the Ministers of Finance and Economy in Algeria
For any questions, please contact Kalmykov Dmitry, Director of the Centre for Multilateral Projects and Network Programmes (mspo@hse.ru).