2016年CRI G20 Meeting Wraps up in Shanghai

At a press conference on Saturday afternoon, China's finance minister Lou Jiwei says financial policymakers have pledged to use all policy tools to strengthen the global recovery.

"We agree to adopt all policy tools - fiscal 1, monetary 2, structural 3 - to counter risks, foster confidence and strengthen growth. Meanwhile we will use fiscal policies flexibly to counter economic risks and ensure the debt share percentage of GDP is on a sustainable path."

The policymakers have cited volatile 4 capital flows, slumping 5 commodity prices, and escalating 6 geopolitical tensions as some of the major vulnerabilities in the global economy.

Despite the challenges, the group has determined 7 that the extent of the recent market volatility 8 does not reflect the underlying 9 fundamentals of the global economy.

Christine Lagarde, managing director of the International Monetary Fund, has stressed the importance of collective action.

"Our conclusion, which I shared with the members of the G20, is that without collective deliberate action on the part of policy members, and implementation 11, the risk, there is a risk that the recovery could derail. So my sense is that there was in the room, a renewed sense of urgency, and a renewed sense for collective action."

A communique issued after the two-day meeting has reaffirmed the group's previous commitments on the exchange rate mechanism 12.

It says the group will refrain from competitive devaluations and will not target the exchange rates for competitive purposes.

The group has also pledged to carefully calibrate 14 macroeconomic policies to reduce uncertainty 15, minimize negative spillovers and promote transparency.

As such, U.S. Treasury 16 Secretary Jack 17 Lew says commitment and communication are key to conducting successful policies for G20 members.

"It's important that in this communiqué that there's an additional commitment to consult, and that means that it's a commitment that we'll keep each other informed, and we'll avoid surprising each other, because that's what you do when you want to try and conduct policies in an orderly way, in a way that's reassuring 18. So I think it's actually quite important that that language is in the communiqué."

He says the United States believes China has the necessary tools including fiscal policies to support household demand, and the ability to succeed in its economic transition.

During the meeting, the economies also promised to fully 13 implement 10 agreed financial reforms, combat terrorist financing and mobilize green finance.

The G20 Finance Ministers and Central Bank Governors Meeting came in advance of the G20 Hangzhou Summit, which is slated 19 for Sept. 4 and 5 with a theme of "Towards an Innovative 20, Invigorated, Interconnected and Inclusive World Economy".

For CRI, I'm Fei Fei.