Al-Sayari urges global cooperation to address rising economic risks
Saudi Central Bank Governor Ayman Al-Sayari called for increased global cooperation to address rising economic risks at the IMFC Plenary Session. He highlighted the global economy's resilience but warned of threats from policy shifts, indebtedness, and technological transformation.
Navigating a complex global landscape
The global economy has shown encouraging resilience to recent shocks, yet faces a growing number of major risks and vulnerabilities.
Saudi Central Bank Governor Ayman Al-Sayari identified these threats as originating from policy shifts, changing international economic structures, rising indebtedness, and rapid technological transformation.
He emphasized the critical need for increased collective efforts to preserve stability, address shared challenges, and strengthen the foundations for sustainable and inclusive growth.
Al-Sayari welcomed progress on governance reforms envisioned in the Diriyah Declaration and encouraged developing guiding principles by April 2026. He also broadly endorsed the policy priorities set out in the Global Policy Agenda (GPA) as a useful basis for guiding the IMF's work in complex global environments.
A strong and credible IMF is vital to achieving these goals.
Vigilant policies and stronger oversight
Al-Sayari stressed that policy responses must remain vigilant, forward-looking, and carefully calibrated.
Elevated debt levels and constrained financing access remain a significant challenge for many emerging market and developing economies (EMDEs).
He underscored the need for independent monetary policy and macroprudential action to anchor expectations and maintain credibility, alongside fiscal policy alignment.
Strengthening collective oversight of non-bank financial intermediaries (NBFIs) and digital assets is crucial.
He also called for accelerating implementation of agreed standards, such as Basel III, to maintain orderly market conditions and stable capital flows, thereby strengthening resilience.
Enhanced surveillance, Al-Sayari added, is central to crisis prevention and must adapt to new realities.
A timely call for collective action
This speech serves as a crucial reminder of the interconnectedness of global financial challenges.
While acknowledging resilience, Al-Sayari's emphasis on cooperation and policy vigilance underscores the urgency of addressing systemic risks before they escalate.
The call for robust IMF tools and enhanced oversight of new asset classes provides a clear roadmap for future stability efforts.