RBI Guv Shaktikanta Das calls for reform in global financial institutions

Reserve Bank of India ( RBI ) Goverr Shaktikanta Das emphasised urgent need for reforms within international financial system to better support emerging ecomies while speaking at Macro Week 2024 event in Washington.  He called on key global organisations, including International Monetary Fund (IMF) and World Bank, to grant se nations a more prominent role in decision-making processes.

Enhancing Global Cooperation

Das highlighted that greater access to resources and an enhanced governance role for emerging ecomies would t only legitimize se institutions but also foster serious global cooperation in tackling macro-financial challenges. " first and foremost priority should be reforming international financial architecture," he stated, advocating for inclusive governance frameworks that reflect realities of today’s global ecomy.

Addressing Vulnerabilities in Financial System

RBI Goverr pointed out vulnerabilities exposed in global monetary and financial systems, particularly in light of recent events that have affected both advanced and emerging markets. He stressed importance of improving global financial regulations to man risks from private capital flows and rising influence of n-bank financial intermediaries, which w hold a significant portion of global assets.

Mitigating Risks from Emerging Financial Trends

Das also addressed complexities introduced by growth of shadow banking, fintech, and decentralised finance, warning of potential contagion effects. He underscored that financial stability must be viewed as a "global public good" and called for a robust regulatory framework to mitigate associated risks.

Role of Geopolitical Stability

Furrmore, he discussed impact of geopolitical tensions on global ecomic policies, ting that sanctions, trade restrictions, and supply chain disruptions contribute to ecomic fragmentation. Das urged for enhanced cooperation among nations, particularly through G20, to promote open and rules-based trade systems.

Call for Collaborative Efforts

He advocated for collaboration in techlogy transfer, investment in global public goods, and initiatives for a sustainable green transition. In summary, Das's remarks underline necessity for inclusive and balanced reforms in international financial architecture, emphasising that such changes are essential for fostering global stability and cooperation.