The Group of 20 financial chiefs will discuss this week destabilizing capital inflows to emerging market countries and collaboration with the International Monetary Fund to address the problem, Japanese Finance Minister Yoshihiko Noda said today.
Capital inflows to emerging economies will be a new, formal agenda, Noda told reporters, adding that the G-20 finance ministers and central bank governors will talk about what cooperation could be possible between the group and the IMF, an international lender in Washington.
Growing capital inflows to emerging economies such as China and Brazil, triggered by lower interest rates in the developed world, have led to inflation there and are feared to destabilize the economies, with some of them taking preventive measures, including taxes on investment by foreigners.
The G-20 financial chiefs will meet in Paris on Friday and Saturday, their first meeting under this year''s presidency of France. Also high on the agenda are the framework for strong, sustainable and balanced growth in the world, as well as proposed guidelines to coordinate the efforts by its members to address the global trade imbalances, and the recent hikes in commodity prices, Noda said.
The G-20 groups Argentina, Australia, Brazil, Britain, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United States and the European Union.
Source: http://www.moneycontrol.com
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