FX.co ★ Yellen to urge G20 to help developing countries to end pandemic

US Treasury Secretary Jannet Yellen will urge G20 to work towards ending the COVID-19 pandemic in developing countries and ensuring they have the resources needed for the recovery, the US Treasury said.

A virtual meeting of G20 finance ministers and central bank governors will be held on Tuesday and Friday.

The US Treasury official outlined priorities for the meeting, which comes as COVID-19 Omicron variant cases are decreasing in many wealthy countries but are still increasing in many developing countries. Host country Indonesia reported a daily record of 57,049 new cases.

Southeast Asia's most populous country had initially planned an in-person G20 finance meeting in Bali. However, it was moved to Jakarta in January. Later, the meeting transformed into a hybrid gathering with many officials participating virtually.

Yellen will call on G20 to adapt their policies to individual country circumstances and close the gap in vaccine access for poorer countries.

This includes supporting efforts by the International Monetary Fund, the World Bank, the World Trade Organization, and the World Health Organization to address global bottlenecks in the deployment of vaccines, therapeutics, and diagnostics.

Yellen will also urge G20 to support the global fund housed at the World Bank to invest in pandemic prevention and preparedness, estimated at $75 billion.

The Treasury Secretary will express confidence that among 136 countries the time has come to sign an agreement for a 15% global minimum corporate tax, so that it can come into effect in 2023.

Democrats in the US Congress support the international tax provision, the official said.

Yellen will also address the issue of more intensive climate action to meet carbon emissions reduction goals, including mobilizing more private capital to finance the shift away from fossil fuels. Public resources can help attract additional private financing for reducing emissions, the official pinpointed.