China, US pact to address financial stress

China’s central bank announced a significant development in financial diplomacy, revealing that a meeting in Shanghai led to an agreement with the US Treasury on appointing contacts to manage potential “financial stress events.” This move represents a rare instance of collaboration between the world’s two largest economies.

The fifth Financial Working Group meeting, which followed Treasury Secretary Janet Yellen’s visit to China last year, also included an exchange of financial stability contacts.

The People’s Bank of China (PBC) reported that the meetings on August 15-16 concluded with a signed exchange of notes to strengthen financial stability cooperation. Discussions covered macroeconomic stability, IMF governance, capital markets issues, and for the first time, involved financial institutions in talks about sustainable finance and cooperation opportunities.

Attribution: Bloomberg

Subediting: M. S. Salama