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G20 welcome in developing nations

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G20 welcome in developing nations

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G20 finance leaders have struck a landmark deal to boost the power of developing countries in the global finance organisation.

Two seats on the 24-strong board will be given to powerful developing nations. Six percent of votes will also be transferred.

It comes after the G20 agreed a year ago to shift at least five percent of voting rights to developing countries like India and Brazil.

Their presence in the IMF does not mirror their emergence as major centres of economic growth.

IMF boss Dominique Strauss-Kahn described the deal as “historic”.

There were also attempts to defuse mounting trade tensions before they impact on the global economy.

The group pledged to avoid competitive devaluations of their currencies to boost exports and agreed to increasingly let markets set foreign exchange values.

There are fears that some nations are relying on cheap currencies to spur growth, risking a protectionist backlash.