Deputy Prime Minister Hong Meets Argentina's Finance Minister: "Concerns Over Developing Countries' Impact from Advanced Economies' Monetary Policies"

Hong Nam-ki, Deputy Prime Minister and Minister of Strategy and Finance, who is visiting Venice, Italy to attend the G20 Finance Ministers and Central Bank Governors Meeting, is taking a commemorative photo with Mart?n Guzm?n, Minister of Finance of Argentina (left), before their meeting on the 8th (local time).

[Sejong=Asia Economy Reporter Kim Hyunjung] Deputy Prime Minister and Minister of Economy and Finance Hong Nam-ki met with Mart?n Guzm?n, Argentina's Minister of Finance, and shared the recognition that the normalization of monetary policies in advanced countries could have negative effects on developing countries, discussing joint responses.

On the afternoon of the 8th (local time), Deputy Prime Minister Hong held a bilateral meeting with Minister Guzm?n in Venice, Italy, where they shared this understanding. This meeting took place on the occasion of the G20 Finance Ministers' Meeting (9th-10th), held face-to-face for the first time in one year and five months, aiming to strengthen economic cooperation between the two countries and jointly respond to major G20 agendas such as mitigating volatility caused by rapid capital flows.

Deputy Prime Minister Hong and Minister Guzm?n agreed that rapid capital inflows and outflows resulting from the normalization of monetary policies in advanced countries could unintentionally have negative impacts on developing countries and act as a major risk factor for the global economy going forward. To address this, they agreed on the need for a flexible approach that reflects individual country circumstances regarding capital flow management measures in the upcoming IMF Article IV consultations scheduled by the end of this year.

They also exchanged views on the utilization of Special Drawing Rights (SDR), currently under discussion at the IMF, and agreed to consult each other during the process of further detailed discussions. The IMF plans to proceed with a general allocation of SDRs amounting to $650 billion by the end of next month to support liquidity for low-income countries, and is discussing establishing a Poverty Reduction and Growth Trust (PRGT) within the IMF using SDRs allocated to advanced countries.

At the meeting, Deputy Prime Minister Hong welcomed the resumption of the Korea-Mercosur trade agreement negotiations, which had been suspended due to COVID-19, after one year and four months, emphasizing the need for a swift conclusion. Minister Guzm?n highly evaluated Korea's economic development experience and expressed hope to strengthen bilateral cooperation not only through the Korea-Mercosur trade agreement but also by expanding direct trade and human exchanges with Korea.

Additionally, considering that next February marks the 60th anniversary of diplomatic relations between Korea and Argentina, Deputy Prime Minister Hong expressed hope to use this milestone as an opportunity to further upgrade bilateral relations.

This content was produced with the assistance of AI translation services.