Fuel and fuel prices are a worry after the Israel-Hamas conflict, according to Finance Minister Nirmala Sitharaman

 Fuel and fuel prices are a worry after the Israel-Hamas conflict, according to Finance Minister Nirmala Sitharaman

Israel-Hamas conflict gasoline costs: On October 13, Finance Minister Nirmala Sitharaman addressed worries that the Israel-Hamas conflict will have an impact on gasoline costs. According to Reuters, several developing economies have expressed similar worries.

In Morocco, where the fourth G20 Finance Ministers and central bank governors conference took place, Sitharaman noted, according to sources, that the continuing turmoil in the Middle East has re-ignited pricing worries.

Click here to see our LIVE coverage of the Israel-Hamas conflict.

"With the latest Middle East crisis, fuel-related issues that several nations previously voiced are returning. There are doubts and worries regarding peace as a good thing. The three main fears in the near future were fragmentation of supply chains, fuel problems that had an influence on components of food security and inflation, and those concerns.

Focus is on the effect on developing markets

The finance minister said that developing nations are expected to be the "engine of growth" for the global economy and that these economies are now seeing "significant growth," according to a Moneycontrol article.

There will be obvious signs of growth momentum, which will extend to all other terrains in a good contagion. The majority of us will recognize it as one of the effects, she continued.

With regard to investment, Sitharaman pointed out that flows won't be impacted by just one reason and said that interest rates have been high across the board for a while. She emphasized once again that continuous investment flows are occurring in developing economies. "Because sustained growth momentum is seen in markets that are developing, investment flows will not be impacted only by interest rates remaining high and will go beyond being limited to those locales wherein it is high," she said.

Other significant issues

According to ANI, Sitharaman also said that the fragmentation of the world's supply chains is a serious worry. The finance minister is now in Marrakech, Morocco, on an official trip to attend the IMF-World Bank Annual Meetings 2023.

She discussed the International Monetary Fund's (IMF) policy goals and how the organization can help its members with US Treasury Secretary Janet Yellen on October 13. According to the Union Ministry of Finance, the discussion was held alongside the current IMF and World Bank Annual Meetings in Marrakech.

Yellen served as the host of the roundtable discussion, and the G20 India Presidency held a high-level conference on "Strengthening the Financial Capacity of MDBs".

Sitharaman spoke on the IMF's mission and lending practices while promoting changes to the organization's governance and Poverty Reduction and Growth Trust (PRGT) financing. She also argued for a strong, quota-based IMF.

She also emphasized in her speech the IMF's role in removing barriers to debt restructuring and encouraging collaboration on the subject. According to the Finance Ministry, this entails co-chairing the Global Sovereign Debt Roundtable (GSDR) alongside India and the World Bank.

held discussions

Sitharaman emphasized the need of multilateralism in pursuing coordinated and consensus-based solutions to the world's problems during India's G20 Presidency. She also made the point that the IMF's main priorities should be macroeconomic monitoring and policy advice in order to be in line with the evolving demands of its membership.

Participants in the seminar examined several ways to improve funding for multilateral development banks (MDBs) and looked at how these possibilities may be most successfully implemented among the MDBs.

The IMF must continue to be well-capitalized via quota-based resources in order to preserve its pivotal position in the global financial safety net, according to the Union's finance minister.