Monday, November 7, 2011

G20: The Standpoint of Saudi Arabia

Europe’s economy is too significant to let it sink and entail a global whirlpool. This was the main reason why the world’s largest economies gathered in Cannes, France on Thursday, 3 November 2011. The main focus of the G20’s agenda was to find a long-term solution for Europe regarding its debt crisis and to lead back the global economy on the right track with the help of other G20 countries.

Finance Minister, Ibrahim Al-Assaf, represented Saudi Arabia in the summit accompanied by Gov. Mohammed Al-Jasser from the Saudi Arabian Monetary Agency. According to an article, French and Saudi bilaterals were expected to take place on the sidelines of the summit. Al-Jasser stated in an interview that in order to solve the problem of the Eurozone, the role of every country is very important including Saudi Arabia.

The presence of Saudi Arabia in the G20 summit is essential because Saudi represents the Organization of Petroleum Exporting Countries (OPEC). Although Saudi’s participation in global economic affairs has been increasing (its stake reaches 2.8 percent in the IMF), during the summit the Kingdom made it clear that it does not desire to take too much part in the bailout.

The Central Bank in Saudi Arabia declared that it does not want to buy “distressed or speculative assets” including European debts and gold. It is clear that the OPEC member’s bank will not suffer from the euro zone crisis because they are too well positioned.

-Barbara H.-

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