21 Feb 2011

G20 agrees on economic imbalance indicators

1:30 pm on 21 February 2011

The group of 20 leading developed and emerging nations meeting in Paris has reached a deal on indicators to detect economic imbalances.

After much debate, the G20 finance ministers agreed on a non-binding scorecard aimed at co-ordinating policies more in order to avoid another global financial crisis.

It has been reported that China objected to foreign reserves and current account balances being included, as it has been accused of accumulating trillions of dollars of currency reserves to unfairly hold down the value of its currency.

The next challenge is to assess these scorecards to identify when an imbalance is a problem, which the G20 will aim to do by April.