China has come, Friday, February 18, the death knell for French hopes of seeing the G20 Finance Ministers adopted a list of indicators ambitious enough to address the global macroeconomic imbalances. The Deputy Minister of Finance of China, Xie Xuren, showed strong opposition to the inclusion of exchange rates and foreign exchange reserves of these indicators before the official opening of the meeting of G20 Finance in Paris.
"Emerging markets have to cope with financial crises and economic shocks, accumulate a certain amount of reserves," he said during a meeting with his counterparts from Russia, Brazil and India. "We believe it is inappropriate to use real exchange rates and reserves," he added. China has foreign exchange reserves estimated at over 2000 billion and its trade surplus in 2010 to $ 183 billion (134 billion euros).
Although the yuan has recently appreciated in the markets, developed countries continue to believe that the Chinese currency remains undervalued. Xie Xuren, who refuses to consider a binding list of indicators to measure the macroeconomic imbalances, the first step before a debate on remedies for reducing them, also hopes that the standard current account is replaced by the trade balance.
China has sought in recent months to reduce its trade surplus, "he argues. In contrast, the Chinese minister said he was ready to accept an advisory list of indicators on deficits, public debt and private savings. Other emerging markets like India, are also reluctant to the idea of tying its hands.
The Indian finance minister, Pranab Mukherjee, has said as opposed to the implementation of a comprehensive mechanism of control of capital flows, while many developed countries argue that flows to emerging markets contribute to macroeconomic imbalances and economic. "We explained that this decision should be left to the discretion of the country," said Minister of India after meeting with his French counterpart, Christine Lagarde.
These positions do not bode well for an ambitious agreement at the meeting of finance ministers of the twenty economic powers on Friday and Saturday. According to Deputy Finance Minister of Russia Dmitry Pankin, the draft final communique of the meeting mentioned four indicators of macroeconomic imbalances, but it remains possible that they are withdrawn for lack of agreement.
These four indicators are, he said, the current account balance, government deficit, private debt and exchange rates, which China does not precisely. "We are concerned by the fact that there are so few," said Dmitry Pankin, hoping that adds such public debt. Germany largest European exporter, sees it as no objection to that, five or six criteria to be selected by the G20 include current accounts, said the Minister of Finance.
Jörg Asmussen said he hoped that discussions can lead to an agreement. 
"Emerging markets have to cope with financial crises and economic shocks, accumulate a certain amount of reserves," he said during a meeting with his counterparts from Russia, Brazil and India. "We believe it is inappropriate to use real exchange rates and reserves," he added. China has foreign exchange reserves estimated at over 2000 billion and its trade surplus in 2010 to $ 183 billion (134 billion euros).
Although the yuan has recently appreciated in the markets, developed countries continue to believe that the Chinese currency remains undervalued. Xie Xuren, who refuses to consider a binding list of indicators to measure the macroeconomic imbalances, the first step before a debate on remedies for reducing them, also hopes that the standard current account is replaced by the trade balance.
China has sought in recent months to reduce its trade surplus, "he argues. In contrast, the Chinese minister said he was ready to accept an advisory list of indicators on deficits, public debt and private savings. Other emerging markets like India, are also reluctant to the idea of tying its hands.
The Indian finance minister, Pranab Mukherjee, has said as opposed to the implementation of a comprehensive mechanism of control of capital flows, while many developed countries argue that flows to emerging markets contribute to macroeconomic imbalances and economic. "We explained that this decision should be left to the discretion of the country," said Minister of India after meeting with his French counterpart, Christine Lagarde.
These positions do not bode well for an ambitious agreement at the meeting of finance ministers of the twenty economic powers on Friday and Saturday. According to Deputy Finance Minister of Russia Dmitry Pankin, the draft final communique of the meeting mentioned four indicators of macroeconomic imbalances, but it remains possible that they are withdrawn for lack of agreement.
These four indicators are, he said, the current account balance, government deficit, private debt and exchange rates, which China does not precisely. "We are concerned by the fact that there are so few," said Dmitry Pankin, hoping that adds such public debt. Germany largest European exporter, sees it as no objection to that, five or six criteria to be selected by the G20 include current accounts, said the Minister of Finance.
Jörg Asmussen said he hoped that discussions can lead to an agreement.
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