G20: what did the leaders decide?

G20: what did the leaders decide?

2022-11-30 • Updated

The G20 summit took place in Bali, Indonesia, on November 2022. Industrialized and developing countries of the G20 account for 80% of global economic activity and two-thirds of the world's population. The leaders of the 17 met in Indonesia to discuss all the hot topics of the world.

The summit's official themes were financial stability, health care, sustainable energy, and digital transformation. However, tensions over Russia's invasion of Ukraine took center stage and complicated host Indonesia's efforts to reach a consensus on these topics.

The condemnation of the Russian-Ukrainian conflict

Initially, the summit was supposed to be devoted to finding ways to restore the global economy after the Covid-19 pandemic. However, Russia's aggression against Ukraine changed priorities.

Many G20 members see the war in Ukraine as a factor holding back global economic growth, increasing inflation, disrupting supply chains, enhancing energy and food security, and raising risks to financial stability. Besides, the leaders of the G20 countries discussed the threat of using nuclear weapons due to the Russian invasion. The final communiqué said: "The use or threat of use of nuclear weapons is unacceptable." 

However, Saudi Arabia, India, Brazil, and China refrained from condemning Russia. Furthermore, Indonesian President Joko Widodo called on Western leaders to soften the rhetoric against the Russian Federation at the G20 summit.

Biden and Xi’s meeting highlights

After a nearly three-year absence from the world stage, Chinese leader Xi Jinping embarked on face-to-face meetings with Western leaders in Bali to restore China's global influence. The meeting with Joe Biden was crucial. 

China's relations with the US and its allies have deteriorated to varying degrees in recent years due to rising geopolitical tensions, disputes over trade, the origins of the Covid-19 pandemic, and Beijing's growing partnership with Moscow despite Russia's war on Ukraine.

After a three-hour meeting on Monday with US President Joe Biden, Xi held talks with the leaders of four America’s allies - Australia, France, the Netherlands, and South Korea.

Снимок экрана 2022-11-17 в 16.36.27.png

Chinese President Xi Jinping and his wife Peng Liyuan at the Welcoming Dinner during G20 in Bali, 15 November 2022 (c) Willy Kurniawan/AP

Macron wants more power 

Many believe that French President Emmanuel Macron used the G20 summit to renew France's strategic ambitions in the Asia-Pacific region. He met with regional heavyweights, including Chinese President Xi Jinping and Indian Prime Minister Narendra Modi, as part of the summit.

Above all, he hopes for "recognition" of France's ambitions and influence at the Asia-Pacific Economic Cooperation summit Thursday and Friday in Bangkok, where France will be the first European country invited.

Emmanuel Macron is making this vast territory, stretching from East Africa to Western America's coast, a strategic priority, where France has a lot of land and maritime areas. This enormous maritime space means France is interested in environmental and fisheries issues and the fight against ocean-related human trafficking.

Yen’s reaction to G20

The news that emerged on the G20 caught the attention of USDJPY traders as the yen jumped against the USD to a new high since 1998, the day before the summit started, raising expectations for Japanese intervention. Attention at the meeting turned to the first reading of Japan's third-quarter (Q3) Gross Domestic Product (GDP) and US retail sales for October, amid hopes of easing divergence between the policies of the Fed and the Bank of Japan.

USDJPY has lost more than 5% in the last week. Now the price is consolidating between 140.750 and 138.400.

 USDJPYH420.png

Conclusion

In general, this year’s summit showed that even if the world’s leaders have different opinions about certain topics, such things as world peace and wealth are priorities for everybody.

 

Similar

XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

AUD: Trade Ideas
AUD: Trade Ideas

Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...

NZD: The Week Ahead
NZD: The Week Ahead

Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...

Latest news

USD Expected To Recover Some Strength
USD Expected To Recover Some Strength

In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...

CAD: Price Delivery Suggests Strength
CAD: Price Delivery Suggests Strength

In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera