By Brian Kesten

The Netherlands’ Bureau of Economic Policy Analysis’s World Trade Monitor reported Thursday that the value of goods traded internationally fell by nearly 14% in 2015. The drop in trade value marks the first time since the 2009 financial crisis that international trade value suffered a contraction. Under the circumstances, the International Monetary Fund has advised G20 members that global growth in 2016 may not meet expectations.

China’s exporting woes are perhaps most responsible, while currency crises across the globe have also contributed. These factors combined in Brazil, where the Brazilian real has declined in value, and Chinese imports to Brazil declined 60% in January 2016 compared to January 2015.

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March 04, 2016

By Olga Symeonoglou

The G20 Leaders’ Summit, a global economic summit, took place on November 15 and 16 in Antalya, Turkey. The G20 members are 20 of the world’s largest economies, with guest countries and international organizations invited each year. The summit followed only days after the attacks in Beirut and Paris, which took up a large part of the discussion that is usually reserved for economics. The member countries agreed that something needs to be done about ISIS and Syria, but are at odds about what the solutions should be. A communiqué detailing the summit’s agenda for the coming year was published at the end of the summit, including goals related to economic growth and recovery, unemployment, trade, economic stability, sustainable development, and climate change. 

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November 19, 2015

By David Oakes, Dauphin Financial Training Inc.

In 2009, the G20 countries committed to reform regulation of over-the-counter (OTC) derivatives markets in order to enhance transparency and reduce risk.  In the US, this is being implemented through the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (DF) and associated regulations.  In the EU, it is being implemented through the European Market Infrastructure Regulation (EMIR), the revised Markets in Financial Instruments Directive (MiFID II), and the Markets in Financial Instruments Regulation (MIFIR).  While these reforms are addressed primarily at market participants in the US and the EU, the global nature of the OTC derivatives business means that many transactions have a cross-border element, and many participants are active in more than one market.  As a result, global entities may be subject to overlapping but non-identical rules, while entities that are based neither in the US nor in the EU may find themselves subject to the extra-territorial reach of one or both sets of rules.

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December 09, 2014

By Kristen E. McCannon

Vladimir Putin argued on November 14 that international sanctions against Russia violate international law. Speaking prior to the G20 Summit in Brisbane, the Russian President claimed that the United Nations Security Council must approve economic sanctions, and therefore that the current sanctions are illegal because they were imposed by Western countries in the absence of such approval. President Putin also suggested that the sanctions might violate the principles of the World Trade Organization.

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November 26, 2014

By Sam Obenhaus

The fix was in and now the Financial Stability Board (FSB), an international financial regulator created by the G20, is investigating.

At issue is alleged collusion among traders to set benchmark foreign-exchange rates.  According to initial investigations carried out by dozens of financial regulators across the globe, traders used chat rooms to share market-moving information about their impending foreign-exchange trades.   They then allegedly used this information to organize their trades during “the fix,” which is a one minute span starting at 3:59:30 London time each afternoon.  The trades executed during “the fix” are used to set the foreign exchange benchmark rates.

After independent investigations by regulators including the U.S. Federal Reserve, the Bank of England and the Reserve Bank of Australia, the FSB is launching its own probe. 

The FSB was created to “to develop and promote the implementation of effective regulatory, supervisory and other financial sector policies” across the G20.  Its membership is made up of financial regulators from G20 states.  The United States’ Treasury Department, Federal Reserve Board, and Securities and Exchange Commission are all members.

Bloomberg has more on this story.

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February 21, 2014