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Reserve Bank Governor, Lesetja Kganyago engaging his counterparts at a meeting in Sandton.
Country representatives at the G20 Finance Track meetings have been urged to focus on effective action towards achieving the Sustainable Development Goals by 2030.
South African Reserve Bank Governor Lesetja Kganyago made the plea at the close of the four-day gathering in Sandton. He also acknowledges global challenges such as rising tensions between nations and geo-economic fragmentation that could hamper this progress.
Kganyago says improving cross-border payments and fast payment systems will be a central focus during South Africa’s G20 presidency.
Kganyago stresses the importance of these improvements to achieve greater financial inclusion and broader economic development.
“We believe that the South African presidency presents a good opportunity to look back at the FSB work over the past 15 years and find practical solutions in enhancing implementation to ensure the continued resilience of the global financial system,” says Kganganyo.
[In Pictures] The first G20 Finance and Central Bank Deputies meeting is underway in Sandton, Johannesburg. The National Treasury and the South African Reserve Bank lead the Finance Track that brings together finance ministers, central bank governors and their deputies. The… pic.twitter.com/FoGSobAmOj
— SA Reserve Bank (@SAReserveBank) December 12, 2024
He says improving payment systems is especially important for intra-Africa trade and remittance costs given that the continent has some of the highest remittance costs, particularly the Harare – Johannesburg corridor.
Kganyago notes that gathering data on non-bank financial institutions has become increasingly challenging for central banks in them trying to understand the risk.
“In some instances, you will most have to use the moral suasion of the authorities to gather that data. But the non-bank financial institutions have become very important in the global financial system in their own name. In some of the countries, they could be as much as 40% of the financial system. So, you got to come to grips with the extent of their activities and for that, we actually need data in order to arrive at more sensible policies,” stresses Kganyago.
The Reserve Bank Governor emphasises the concern of the Finance Track regarding developing countries, facing solvency challenges.
VIDEO | The G20 Finance and Central Bank Deputies meeting:
