Egypt's central bank governor Hassan Abdalla called for stronger global policy coordination to support emerging markets hit by trade wars, supply chain disruptions, and volatile investment flows. Speaking at the G20 finance ministers and central bank governors' meeting in Washington, Abdalla warned that escalating trade fragmentation, falling foreign direct investment, and currency volatility are weighing heavily on developing economies. He urged policymakers to move swiftly to mitigate risks, stressing the need for collective action to bolster macroeconomic stability. According to a statement by the Central Bank of Egypt (CBE) on Saturday, Abdalla highlighted Africa's pressing challenges, including weak infrastructure, macroeconomic vulnerabilities, and high capital costs. He called for leveraging the African Continental Free Trade Area (AfCFTA) to offset the effects of global trade fragmentation and boost regional growth. To unlock more private investment, Abdalla recommended increasing the number of bankable projects across the continent and enhancing multilateral lenders' capacity to extend credit. He backed the use of innovative tools like blended finance, the rechanneling of Special Drawing Rights (SDRs), and risk guarantees to attract private capital. Egypt is participating in the G20 meetings as an invited guest for the third consecutive year, with South Africa holding the 2025 presidency. Attribution: Amwal Al Ghad English
