traditional macroeconomic policy responses, these measures showed that they can help ensure macro - financial stability. there are many quarters, ranging from academia to the imf itself2 that are increasingly subscribing to this view. however, there are also reputational costs to implementing these policies, which i will address a little later. but what do we mean by “ it worked ”? in brazil ’ s case, it means the following : ( a ) macroprudential policies contributed to bringing down the pace of credit expansion to more sustainable levels ; ( b ) they were successful in improving the maturity and composition of international financing ; and ( c ) they also reduced foreign exchange volatility. therefore, the combination of strong fundamentals and our pragmatic policy response left emerging market economies such as brazil better prepared for the eventual exit from unconventional monetary easing. but the question is better prepared for what? let me now turn to the second topic of my remarks which is the … impact of normalization on brazil and other emes let me begin by noting that the process of normalization of monetary conditions underway in global financial markets is, overall, a positive development for emerging market economies. despite market volatility, it reflects the gradually improving outlook for the world ’ s largest economy. as global growth and global trade recover, emerging market economies will benefit. we knew that, despite the best efforts to communicate an exit strategy from unconventional monetary policies, the beginning of any discussion about “ tapering ”, i. e. the possibility of a reduction of asset purchases such as what occurred in may, would lead to a re - pricing of risk and a global sell - off of emerging market assets. it indeed happened as we anticipated. emerging market economies have generally seen depreciating exchange rates, increasing see imf spill - over reports and in particular, imf ( 2013b ) and ostry and alii. ( 2012 ). for example, rey ( 2013 ) and the imf papers listed in the references. bis central bankers ’ speeches sovereign bond yields and credit default swap spreads, and in many cases falling stock market prices. in brazil ’ s case, the sell - off has manifested itself mostly as a search for protection, more than actual outflows. most of the selling pressure has come from foreign real - money investors seeking to hedge their portfolios from currency devaluation, brazilian companies hedging their foreign exchange liabilities, and foreign companies hedging their exposure to local

carolina de assis barros : g20 a€ “ global partnership for financial inclusion ( gpfi ) speech by ms carolina de assis barros, deputy governor of the central bank of brazil, at a panel discussion to celebrate the 50th anniversary of the central bank of brazil, fortaleza - ce, 1 july 2024. * * * ladies and gentlemen, good morning. welcome to the beautiful city of fortaleza. it is an honor to stand before you today / as we gather for the 2nd plenary meeting of the g20 global partnership for financial inclusion. my warmest greetings to all participants : representatives of g20 member countries, invitee countries, implementing partners, and affiliated partners. allow me to express our gratitude to the gpfi co - chairs, ms. magda bianco and mr. chanchal sarkar, for their great efforts in coordinating the gpfi initiatives. we all know that financial inclusion is not merely an economic concept. access to quality financial services empowers individuals, fosters entrepreneurship, and drives economic growth. additionally, it provides the resilience needed by individuals and small enterprises to face extreme climate events - an aspect that sometimes does not receive proper attention until we experience it firsthand. i'm sure many of you are already aware of the climate tragedy we are facing in the extreme south of brazil, in the state of rio grande do sul. since the end of april, the state has been suffering from storms and floods, which have had a devastating impact on the region. more than half a million people are displaced, staying in the homes of friends or relatives, and around fifty thousand are in shelters. unfortunately, more than two hundred people have lost their lives or are still missing. more than 94 % of all economic activity in rio grande do sul has been affected, causing significant damage to communities, businesses, and infrastructure. to give you an idea, the international airport in porto alegre, the state capital, was heavily affected and will remain out of operation until december. unfortunately, we know that this catastrophe is not an isolated case. therefore, financial resilience should be, more than ever, a key outcome sought through global efforts regarding financial inclusion and financial well - being. 1 / 3 bis - central bankers'speeches we, as gpfi members, need to embrace the challenge of financial inclusion with a vision where no one is left behind, while also being mindful of the quality of this financial inclusion. together