This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-11612701

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
G20 summit agrees to reform IMF G20 summit agrees to reform IMF
(about 6 hours later)
By Andrew Walker Economics correspondent, BBC World ServiceBy Andrew Walker Economics correspondent, BBC World Service
Finance ministers from the G20 leading economies have agreed reforms of the International Monetary Fund, giving major developing nations more of a say.Finance ministers from the G20 leading economies have agreed reforms of the International Monetary Fund, giving major developing nations more of a say.
At a meeting in South Korea, they agreed a shift of about 6% of the votes in the IMF towards some of the fast-growing developing countries.At a meeting in South Korea, they agreed a shift of about 6% of the votes in the IMF towards some of the fast-growing developing countries.
Those nations will also have more seats on the IMF's Board, while Western Europe will lose two seats.Those nations will also have more seats on the IMF's Board, while Western Europe will lose two seats.
But the US will retain the veto it has over key decisions.But the US will retain the veto it has over key decisions.
Such decisions require an 85% vote - Washington holds 17% under the IMF's weighted voting system.Such decisions require an 85% vote - Washington holds 17% under the IMF's weighted voting system.
The ministers also agreed to refrain from competitive devaluations of their currencies and move towards more market-determined currency systems.
'Currency manipulation''Currency manipulation'
During the talks in the South Korean city of Gyeongji, the ministers also agreed to move towards more market-determined currency systems. The talks in the city of Gyeongji come against a background of strains in financial markets which some have called a currency war.
Much of the tension in the currency market is being blamed on the US and China, although it is not clear that either country will be restrained by the latest agreement.
The pressure has been on China to end its policy of holding the yuan down to maintain its competitiveness.The pressure has been on China to end its policy of holding the yuan down to maintain its competitiveness.
There was, however, no timetable for change, so Beijing has kept to its long-held position that it will reform its currency policy, but gradually. There was, however, no timetable for change in the devaluations agreement, so Beijing has kept to its long-held position that it will reform its currency policy gradually.
Another element in the tension over exchanges rates is the flood of investment funds going to developing countries which tends to push their currencies higher, undermining competitiveness. In the US, low interest rates and other central bank policies have led many investors to seek higher returns in developing countries, which tends to push their currencies higher, undermining competitiveness.
This is partly a result of policies in the US which mean investors are seeking higher returns elsewhere. This is partly a result of policies in the US which mean investors are seeking higher returns elsewhere. US officials would argue the weak dollar is not the result of a deliberate devaluation, but rather a side effect of policies aimed at stimulating the domestic US economy.
It is possible that there will be more dollar weakness: One of the policies behind it - the Federal Reserve boosting the US money supply - might be extended in the next few weeks.
German Economy Minster Rainer Bruederle suggested that US policies, if not reversed, amount indirectly to currency manipulation - an accusation more often levelled at China.German Economy Minster Rainer Bruederle suggested that US policies, if not reversed, amount indirectly to currency manipulation - an accusation more often levelled at China.