The experimentation in renminbi (RMB) internationalization is about to take a new turn. On July 6, 2012, China and Singapore signed an enhanced free trade agreement (China-Singapore Free Trade Agreement) that includes a promise to designate a Chinese bank to clear RMB deals in Singapore.
CIGI report on regulatory failings in run-up to financial crisis questions FSB’s ability to succeed in its current form
International regulators failed to keep pace with the globalization of the financial system in the run-up to the financial crisis in 2007 — a failing thathighlights the magnitude of the current challenges in managing the international financial system, says a new CIGI paper.
The Financial Stability Forum has largely avoided the intense scrutiny and criticism that other institutions have come under since the eruption of the global financial crisis in 2007. Based on interviews with scores of policy makers who worked on the FSF in various capacities, and on thousands of pages of previously undisclosed documents, the paper brings to light the failure of regulators to keep pace with the globalization of the financial system — a failing that underscores the magnitude of the challenges facing the international community today.
Before the frenetic pace of the G20 summit in Los Cabos, and before the latest breathless announcement of a breakthrough to resolve the crisis in Europe, CIGI co-sponsored a panel discussion at the Conférence de Montréal with the Asian Development Bank on food security.
Earlier in the year, I wondered if a European frost, or the uncertainty generated by the continuing crisis in the euro zone, would kill the "green shoots" of global growth. While the frost did not materialize in the spring as feared, it now looks as though a summer drought of policy leadership is wilting the crops in the field. Needless to say, this is not good news – least of all for US President Obama, who is hoping that slow steady growth will propel him into a second term.
"G20 countries have a legitimate interest in the timely, effective resolution of the crisis in the eurozone, which, if left unchecked, will impose a cost on the rest of the world," writes CIGI economist James A. Hale, ahead of the Los Cabos G20 Summmit.
Critical gaps in almost every sector of global governance and coordination arrangements are impeding progress in addressing a wide range of the world’s most pressing challenges, a new CIGI report says.
Past failures in addressing global economic imbalances suggest the International Monetary Fund is poorly positioned to lead such efforts in the future, says CIGI’s new behind-the-scenes account of IMF activities prior to the global financial crisis.
“The amounts of money are not significant, but it is symbolic of a spirit of cooperation, and symbolic of the arrival of [emerging] countries,” says CIGI Senior Visiting Fellow Manmohan Agarwal, commenting on emerging economies pledging additional funds to the International Monetary Fund (IMF) in order to limit the effect of the euro zone debt crisis on the global economy.
This paper is a detailed account of the initiatives, led by the IMF, to address imbalances prior to the 2008 global financial crisis. It is based on interviews with scores of policy makers who were involved in the initiatives, and on thousands of pages of confidential documents that have never been disclosed.