Yuan unlikely to be main issue at G20 – S.Korea fin min

SEOUL, April 19 (BestGrowthStock) – The appreciation of China’s yuan
is unlikely to be a main issue during a finance ministerial
meeting among the Group of 20 rich and emerging economies later
this week, South Korea’s finance minister said.

G20 finance leaders and the International Monetary Fund in
Washington would discuss issues related to global financial
regulations, energy subsidies and the economy, but were not
expected to meet an agreement during the meeting, South Korean
Finance Minister Yoon Jeung-hyun said on Monday.

“If the G20 meeting discusses a specific country’s foreign
exchange rates in public, it will be very limited … We may see
talks about foreign exchange rates, but they will be very
superficial,” Yoon, co-chairman of the G20 this year, told
reporters.

The United States and the European Union have said China
should allow the yuan to appreciate to ease imbalances in the
global economy.

Last year, the G20 agreed to a framework for rebalancing
growth, but implementing it was likely to prove difficult —
particularly when countries are asked to adopt policies that may
hurt their domestic growth.

Regulation of the financial sector would be the main topic
for the meeting, but there was unlikely to be an agreement on the
issue, Yoon said two days before leaving for Washington.

“It will take considerable time to get a result,” he said.

“Due to sharp differences in the interests of each country,
it will be difficult to conclude in April,” South Korean Deputy
Finance Minister Shin Je-yoon said.

Despite bold pledges to rein in risky behavior by banks and
ensure taxpayers never again have to foot the bill for salvaging
companies on the brink of collapse, domestic regulatory reform
efforts are bogged down in legislative mud, and there is growing
concern that cross-border cooperation will be tough to secure.
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The United States and other countries have pushed for a bank
levy to cover the cost, while Canada has been among the most
vocal opponents of the idea.

On energy subsidies, Shin said he cautiously expected the G20
to agree on a timeframe but not an agreement on details.

Yuan unlikely to be main issue at G20 – S.Korea fin min