News / Asia

    Global Financial Policy Makers Agree to IMF Reform, Currency Pledge

    US Treasury Secretary Timothy Geithner arrives at a press conference following the G20 Finance Ministers and Central Bank Governors meeting in Gyeongju, 23 Oct 2010
    US Treasury Secretary Timothy Geithner arrives at a press conference following the G20 Finance Ministers and Central Bank Governors meeting in Gyeongju, 23 Oct 2010

    A historic deal among the world's top 20 economies has been reached reforming the International Monetary Fund. Financial policy makers also agreed to avoid a currency war.

    The agreement by the advanced and leading emerging economies will shake up the International Monetary Fund. Europe is to give up two of its nine chairs on the 24-seat executive board.

    "It is a milestone in reforming global governance," said Olli Rehn, the chief for economic and monetary affairs of the European Commission.

    IMF managing director Dominique Strauss-Kahn calls it "very historic" and the biggest-ever reform for the fund since its inception at the end of the Second World War.

    Dynamic emerging economies and other under-represented countries, such as Brazil, China, India and Russia, are to control more than six percent of IMF voting rights by 2012.

    In an effort to avert a possible trade war that could damage the global economic recovery, the Group of 20 members also pledged not to engage in tit-for-tat currency devaluations.

    The meeting in Gyeongju took place just three weeks before the G20 summit of heads of governments in the South Korean capital, Seoul. U.S. Treasury Secretary Timothy Geithner says the Seoul summit needs to give force to what was agreed here.

    "The challenges the leaders face are the ones that we discussed today," he said. "And what we want to see is the leaders review these proposals, review this framework and give it their full support."

    Officials of the host nation say they want the Seoul meeting to implement a new economic order that will prevent any future fiscal crises from endangering the world's economy

    Officials say the currency agreement emerged after an all-night negotiating session. It commits the G20 nations to "refrain from competitive devaluation of currencies" and allow markets, to primarily drive exchange rates.

    The state of the U.S. dollar, weakened by a loose monetary policy, prompted some G20 countries, notably Brazil, Indonesia and South Korea, to intervene in the foreign exchange market recently to stem a surge of their currencies.

    Strong currencies hurt a country's export competitiveness. China has rejected calls to increase the value of the yuan, which is effectively pegged to the dollar.

    Host South Korea and the United States put forward a proposal to narrow the gap between what any G20 nation produces and invests and how much it consumes.

    But a push for a binding numerical target of four percent of gross domestic product by 2015 was called unrealistic by Japan's finance minister, Yoshihiko Noda. Australia's treasurer, Wayne Swan, rejected what he called a "one size fits all" policy. Other members, such as China and Germany, also expressed reservations. They are among those who point the finger of blame at U.S. policies for the recent international financial crisis.

    The current account proposal, however, would also force the United States to spend less while boosting its exports and savings.

    The G20 ministers and bank governors also agreed on tougher rules for financial institutions blamed for triggering the global economic crisis.

    You May Like

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    City could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters

    Turkey Aims New Crackdown at Journalists, Academics, Airline Workers

    Ankara continues targeting people allegedly linked to exiled cleric, who it says led the failed military coup

    Pakistan Ready to Inaugurate Rebuilt Afghan Border Crossing

    Construction of Torkham Gate triggered deadly clashes between Pakistani and Afghan military forces

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora