G20 Riyadh Summit Caps off Challenging 2020

A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)
A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)
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G20 Riyadh Summit Caps off Challenging 2020

A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)
A virtual ‘family photo’ of G20 heads of state was displayed on Friday on the walls of the historic Salwa Palace in Diriyah at a cultural dinner for journalists, guests and envoys. (Asharq Al-Awsat)

The 2020 G20 Riyadh summit will kick off on Saturday, bringing together the leaders of the world’s top economies. Saudi Arabia is hosting the event amid anticipation of its recommendations that should push forward the global recovery as the world grapples with the unprecedented novel coronavirus pandemic.

Amid the most challenging circumstances witnessed by any G20 summit, Custodian of the Two Holy Mosques King Salman bin Abdulaziz will inaugurate the two-day event, which will be held virtually due to the pandemic. He will deliver an opening speech before world leaders and organizations on Saturday.

This year’s summit carries more significance as the world is looking to the G20’s efforts in protecting lives and livelihoods and helping with the recovery after the pandemic. The G20 leaders will also address issues to pave the way to a more inclusive, more sustainable and more resilient economic recovery and laying the foundations for a better future. The aims of the Saudi G20 Presidency focus on Empowering People, Safeguarding the Planet and Shaping New Frontiers.

The Saudi G20 Presidency spared no effort in cultivating collective efforts during the challenging situation of 2020, read a G20 statement. “As a G20 member and the Chair of the 2020 G20, hosting this high-level meeting is historic for Saudi Arabia, showcasing the results of the ongoing transformational Saudi Vision 2030 reflected in its Presidency.”
Throughout the past 14 summits, the G20 has never encountered such exceptional and extraordinary circumstances that have been imposed by the pandemic and its impact on the global economy.

The crisis has put the Kingdom before a test that a G20 member state has never had to endure. Saudi Arabia succeeded in employing all of its political, economic and intellectual tools in confronting the pandemic and its repercussions on the world, especially in helping poor countries and coordinating fully with other G20 members.

King Salman had stressed that the group’s top priority was fighting the pandemic and its health, social and economic impacts. Protecting lives, jobs and livelihoods was at the top of the G20’s concerns.

These efforts should culminate in finding a vaccine for the coronavirus and ensuring that it is fairly distributed to everyone, he stressed, while underlining the needs of the world’s poorest countries.

When the pandemic first began, Saudi Arabia held a meeting for G20 health ministers back in April with the participation of the World Health Organization. The Kingdom kicked off its efforts to unite the global fight against the disease by calling for an extraordinary G20 summit in March.

Saudi Arabia has pledged $500 million to support global efforts to combat the pandemic. It said then it would allocate $150 million to the Coalition for Epidemic Preparedness and Innovation, $150 million to the Global Alliance for Vaccines and Immunizations, and $200 million to other health organizations and programs.

The pandemic has had a devastating effect on the global economy and oil market. Tourism was the first sector to be struck down.

Saudi Arabia was quick to take action to curb the impact of the crisis. On April 8, it held an extraordinary virtual meeting for G20 energy ministers to achieve stability in the energy markets. The ministers announced that they were determined to take the necessary measures to achieve this balance.

In January, OPEC, Russia and other producers, a group known as OPEC+, implemented a deal to cut output by 1.7 million bpd to support the market.



Dollar Unmoored as Traders Unsure on US Tariffs 

US dollar banknotes are seen in this photo illustration taken February 12, 2018. (Reuters)
US dollar banknotes are seen in this photo illustration taken February 12, 2018. (Reuters)
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Dollar Unmoored as Traders Unsure on US Tariffs 

US dollar banknotes are seen in this photo illustration taken February 12, 2018. (Reuters)
US dollar banknotes are seen in this photo illustration taken February 12, 2018. (Reuters)

The dollar was adrift on Wednesday, with weak US confidence data and concerns about the effect of sweeping tariffs on US growth putting the brakes on a recent bounce.

After briefly crossing below 150 yen, the dollar floated to 150.55 yen in the Asia session, but traders lacked conviction, while a messy week of tariff hits looms.

The euro, which spent a week edging lower from a five-month high, has steadied around $1.0783. Sterling held steady at $1.2931 ahead of British inflation data and a budget update due later in the day.

The euro and Russia's rouble had little immediate reaction to US deals with Russia and Ukraine to pause attacks at sea and on energy targets, though wheat prices fell as the US said it will push to lift sanctions on Russian agriculture.

That leaves the focus on next week, when US President Donald Trump has threatened to impose - or at least provide details of - a new round of tariffs on autos, chips and pharmaceuticals.

The trade-sensitive Australian dollar hovered just above 63 cents, wavering only slightly when February consumer inflation data came in a bit softer than expected.

It barely responded to Tuesday's federal budget, which promised tax cuts and extra borrowing to fund relief measures for voters ahead of a May election.

"The major driver of AUD/USD over the next few weeks, and possibly months, will be the new US trade policy and the response from foreign governments," said Commonwealth Bank of Australia strategist Joe Capurso.

"If market participants are caught flat footed by larger than expected US tariffs and retaliation by other governments next week, AUD/USD can test $0.60 in coming weeks."

The New Zealand dollar was a tad firmer at $0.5750.

Tariffs and threats of the duties have already driven counterintuitive moves in currency markets as concerns they may drive down US growth have confounded the assumption that the levies should be inflationary and drive up the dollar.

Data released on Tuesday showing US consumer confidence plunged to the lowest level in more than four years in March highlighted how the uncertainty is weighing heavily on households.

For the quarter, the dollar index - which had rallied strongly between September and January - is headed for a roughly 4% drop. It was stalled at 104.32 in the Asia afternoon.

In emerging markets, Türkiye's lira found a footing just below 38 to the dollar after the finance minister and central bank governor told investors they would do whatever was needed to tame market turmoil triggered by the arrest of President Recep Tayyip Erdogan's main political rival.

Indonesia's currency teetered near a record low as worries over slowing growth and rising government spending shook confidence in Southeast Asia's biggest economy.