China blocks G20 moves on how to guage economic imbalances

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China blocks G20 moves on how to guage economic imbalances

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China has blocked moves to use exchange rates and currency reserves in the criteria of how to measure global economic imbalances at the G20 meeting of finance minister in Paris.

Still a partial accord was reached on how to gauge general economic well being.

The United States and others accuse China of keeping the yuen artificially low to boost exports and accumulate massive foreign currency reserves.

French Finance Minister Christine Lagarde chaired the meeting:

“One day at a time means agreeing on the indicators first. The next step will be the guidelines and the following step will be the mutual assessment test, it is a question of being focussed, determined and respectful of other people’s views. That is what we have tried to do today and what we will try to do tomorrow.”

China, the worlds second biggest economy, has long resisted Western pressure to substantially revalue its currency to help rebalance global growth.

The G20 also moved to end speculation on food prices by banks, hedge and pension funds.

Food prices are at “dangerous levels” according to the World Bank with close to 50 million people being shunted into poverty since last summer as a result.