Go Finance Reporting in BEIJING - The ministers and monetary policy makers of a group of 20 countries both developed and developing countries (G-20) will attend the meeting in China this week to discuss the challenges facing the world monetary system.
In this meeting, Beijing ruled out talks the value of its currency is still weak. The central bank heads and finance ministers of leading economic group G-20 meet on Thursday (03/31/2011) in the city of Nanjing, China, amid the challenges of the global recovery of the Japanese earthquake and the debt crisis of the Euro Zone. "This is the first time in which a developing country to host the G-20 meeting," the official said France, which currently chair the economic forums such as quoted by AFP.
In the G-20 meeting this time, a number of key figures in world economic policy will also be present as the Minister of Finance of the United States (U.S.), Timothy Geithner, Vice Prime Minister of China Wang Qishan, executive director of the International Monetary Fund (IMF) Dominique Strauss Kahn, and Bank President Robert Zoellick World. China says yuan exchange rate system will not be discussed at the meeting even though critics continue to flood Beijing pegged the yuan is considered too low.
Some people assessing the condition caused Chinese exporters benefited. French President Nicolas Sarkozy said Paris did not expect a decision (China) to the exchange rate regime, but it hopes the Chinese authorities will contribute to the debate about reform of the international monetary system. At a meeting last February in Paris, the G-20 agreed on a series of indicators to measure the economic imbalance between the export of surplus countries like China and countries like the U.S. with the structural deficit.
The indicators that make no such imbalance is the problem of budget deficits, public debt, and savings. While external indicators of concern is the balance of trade and investment flows by taking consideration of the exchange rate, fiscal, and monetary policy. However, China has the largest foreign reserves in the world with a value of more than $ 2, 8 trillion balked at these indicators.
"In Nanjing, the imbalance would not be a major topic of discussion," said one Western diplomat. "On the contrary, China's main concern is the flow of speculative capital and is expected to be a major topic on the agenda of the G-20," the official added.
Like other developing markets, China should feel that they have become victims of the flow of funds seeking short-term gains. It is because return on investment in the land of Panda far above other countries, especially in the U.S. and Europe and other developed countries that tend to slow down. Beijing said that capital flows are even pushing inflation because prices go up and cause social instability, something that is very scared of the Government of China.
Other topics discussed during the Nanjing is the problem of global reserves in which France hoped to play a greater role in helping countries out of financial crisis. According to AFP, the Minister of Finance Geithner is likely to discuss strategic and US-China economic dialogue which is expected to be held next spring.
Meanwhile, French President Nicolas Sarkozy will meet Hu Jintao in Beijing ahead of the meeting in Nanjing. Besides, who also will be discussed is the impact of the earthquake and tsunami in Japan March 11 that destroyed some facilities of the leading automotive and electronics companies.(GoFinance)
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