• Union Minister for Finance & Corporate Affairs Nirmala Sitharaman attended the 50th meeting of the International Monetary and Financial Committee (IMFC) that took place in Washington, D.C. on October 24 & 25.

• Sitharaman said that in 2024 the global economy has shown remarkable resilience. While output is nearing its potential in some major economies, headline inflation has generally moderated and moved closer to the central banks’ targets. 

• She said that several downside risks, including growing geo-political tensions and medium-term global growth prospects, are a concern due to their continued weakness. 

• Several IMFC members discussed the global macroeconomic and financial impact of current wars and conflicts, including with regard to Russia, Ukraine, Israel, Gaza, Lebanon, and in other places. They acknowledged, however, that the IMFC is not a forum to resolve geopolitical and security issues which are discussed in other fora.

International Monetary and Financial Committee (IMFC)

• The International Monetary and Financial Committee (IMFC) is responsible for advising and reporting to the International Monetary Fund (IMF) Board of Governors as it manages and shapes the international monetary and financial system. 

It also:

i) Monitors developments in global liquidity and the transfer of resources to developing countries.

ii) Considers proposals by the Executive Board to amend the Articles of Agreement.

iii) Deals with unfolding events that may disrupt the global monetary and financial system.

iv) Advises on any other matters that may be referred to it by the Board of Governors.

• Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the IMF.

• The IMFC meets twice a year during the IMF Spring and Annual Meetings. The Committee discusses matters affecting the global economy and advises the IMF on the direction of its work. 

• A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

• At the end of the meetings, the Committee issues a statement summarizing its views. These statements provide guidance for the IMF’s work program during the half year leading up to the next Spring or Annual Meetings.

• There is no formal voting at the IMFC, which generally operates by consensus.

• The size and composition of the IMFC mirrors that of the Executive Board. The IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and who are usually drawn from the governors of the IMF’s 191 member countries.

• The group is currently chaired by Mohammed Aljadaan, Saudi Arabia’s Minister of Finance. He was selected to head the Committee for a term of three years effective January 4, 2024.

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