G20 finance chiefs affirm central bank independence in communiqué
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In their first joint communiqué since October 2024, G20 finance leaders emphasize central bank independence, global trade reform, and support for low- and middle-income countries.
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Delegates arrive at the G20 finance ministers and Central Bank governors meeting in Cape Town, South Africa, on February 26, 2025 (AP)
Finance leaders from the Group of 20 emphasized the critical role of central bank independence in a joint communiqué released Friday, following a two-day summit in Durban, South Africa.
This marked the first official communiqué since October 2024, just ahead of President Donald Trump’s election win and the ensuing tariff disputes. The independence of central banks was a central focus, particularly in light of Trump’s repeated criticism of US Federal Reserve Chair Jerome Powell for not cutting interest rates, remarks that have unsettled global financial markets.
Despite the absence of US Treasury Secretary Scott Bessent, who also skipped the previous G20 finance meeting in Cape Town, Washington was represented by Michael Kaplan, the acting Under Secretary for International Affairs. The US is set to take over the G20’s rotating presidency in December.
In the communiqué, G20 ministers and central bankers vowed to strengthen cooperation and reaffirmed their support for independent monetary policy:
"Central banks are strongly committed to ensuring price stability, consistent with their respective mandates, and will continue to adjust their policies in a data-dependent manner. Central bank independence is crucial to achieving this goal," the communiqué said.
South Africa’s Deputy Finance Minister David Masondo told reporters that all members had agreed on the outcomes reflected in the communiqué, which focused on “strategic macroeconomic issues.”
The document also acknowledged the importance of the World Trade Organization (WTO) in advancing global trade, while noting that the institution is in need of reform.
Although G20 communiqués are non-binding, Friday’s agreement is viewed as a diplomatic success, especially after finance ministers failed to reach consensus at their previous meeting in February, much to the disappointment of the host nation, South Africa.
Under its presidency theme of “Solidarity, Equality, Sustainability,” South Africa has prioritized advancing an African agenda, highlighting issues such as high capital costs and climate finance.
In the communiqué, G20 finance ministers and central bank governors also pledged to address debt vulnerabilities in low- and middle-income countries in a manner that is effective, comprehensive, and systematic.
