Entries for 2021

The IIF Sustainable Finance Monitor covers key developments in the global sustainable finance agenda. In the April 2021 issue, we examine the proliferation of net zero ambitions from governments, corporates, and financial firms. 

The April 2021 edition of the Insurance Update provides targeted updates on IIF insurance activities and events. 

Financial firms are rapidly stepping up climate commitments, increasingly to net-zero emissions targets; However, comparing targets is challenging in the absence of widely agreed GHG accounting standards for “financed emissions”; Demand for high-quality carbon credits is set to accelerate as firms seek ways to meet net-zero commitments  

This Second Addendum references the recent extension of and modifications to the G20/Paris Club Debt Service Suspension Initiative through December 31, 2021, providing a similar extension of/modifications to the private sector Terms of Reference.

COVID-19 caused substantial disruption to labor markets. We survey prime-age employment ratios across key economies. Negative labor market fallout...

Pent-up demand should support robust output growth in 2022. The SARB is expected to keep its accommodative policy stance. South Africa’s current account will gradually revert to a deficit. The government is expected to stand firm against labor unions. Fiscal consolidation could narrow risk premia in coming years.

EM current account deficits are mostly small or inexistent, ... while fiscal deficits remain close to historical highs for many. This combination ...

In 2020, China’s large current account surplus was mostly offset by similarly large capital outflows. Given FDI and portfolio surpluses, capital outflows were categorized in the Other Investment account, and more specifically, as China’s external loans and deposits. 
 

The April 2021 Global Regulatory Update provides updates on current work streams. 

Government debt levels in emerging markets are rising rapidly as pandemic and SDG-related spending needs ramp up; Prioritizing growth-boosting green investments could help offset the anticipated surge in debt ratios; The good news: near-term sovereign debt vulnerabilities in major emerging markets have eased back to pre-pandemic levels

The global sustainable debt market breached the $2tn mark in Q1 2021 and is fast approaching $3tn. Green bond issuance has surged as corporate net-zero emissions commitments accelerate. 

We last week began a series on global supply disruptions, … which showed that rising delivery times in global manufacturing, … rival what Japan ex...

This note provides a brief summary of key themes that emerged in the sixth annual IIF Digital Currency Roundtable.

We compare the cases of 12 countries that have attempted to unify their FX markets. Unified exchange rate systems eliminate distortions, reduce rent-seeking, and boost fiscal revenues. However, successful unification hinges on consistent underlying credit and fiscal policies and broad reforms. 

The United States imposed sanctions on the primary OFZ market last week. We believe that the measures’ impact will likely be manageable for Russia. Domestic financial institutions have sufficient capacity to absorb  issuance. An improving economy also supports revenues and reduces financing needs. Secondary market sanctions would be far more consequential but are unlikely.