By Nathalie Boschat
PARIS (Dow Jones)--French Finance Minister Francois Baroin will travel to Brazil next week to meet his counterpart Guido Mantega to discuss issues related to the next gathering of the Group of 20 industrialized and emerging nations, a person familiar with the situation said.
Baroin is in China, where he accompanied French President Nicolas Sarkozy, who met Chinese President Hu Jintao Thursday to prepare the next G-20 meeting.
Baroin held talks with Chinese officials in Beijing Friday and said France and China have agreed to form a task force to define the conditions under which the yuan could become part of the International Monetary Fund's special drawing rights.
As G-20 chair, France has identified Brazil, like China, as a key partner for G-20 talks centering on the reform of the international monetary system.
The next G-20 meeting is taking place on the sidelines of the annual meetings of the International Monetary Fund scheduled in Washington on Sept. 23 to Sept. 25.
No one at the French finance ministry was immediately available for comment.
Brazil has been vocal on one of the themes put on the table by France as G-20 chair: how to better police capital flows globally. Several emerging countries, including Brazil, have been faced with buoyant capital flows in search of higher yields, which have put upward pressure on their currencies and hurt their exports.
Countries have reacted by imposing capital controls or intervening on their currency in a unilateral way. This has prompted the G-20 to try and coordinate capital controls better, so as to avoid adverse impact on growth from disorderly moves.
The discussion on capital flows has proved contentious among G-20 members.
Brazil for one, while recognizing that more coordination is needed, has often said that countries facing a surge in capital inflows should be able to take individual measures to curb hot money flows as they wish.
Baroin and Mantega will also discuss how to increase transparency on commodity derivatives markets, another key topic on France's G-20 agenda, the person familiar with the matter said. Brazil, as one of world's largest food producers, has played a prominent role in G-20 talks on agriculture, which have been focusing on ways to tame food price volatility.
Source: http://online.wsj.com
PARIS (Dow Jones)--French Finance Minister Francois Baroin will travel to Brazil next week to meet his counterpart Guido Mantega to discuss issues related to the next gathering of the Group of 20 industrialized and emerging nations, a person familiar with the situation said.
Baroin is in China, where he accompanied French President Nicolas Sarkozy, who met Chinese President Hu Jintao Thursday to prepare the next G-20 meeting.
Baroin held talks with Chinese officials in Beijing Friday and said France and China have agreed to form a task force to define the conditions under which the yuan could become part of the International Monetary Fund's special drawing rights.
As G-20 chair, France has identified Brazil, like China, as a key partner for G-20 talks centering on the reform of the international monetary system.
The next G-20 meeting is taking place on the sidelines of the annual meetings of the International Monetary Fund scheduled in Washington on Sept. 23 to Sept. 25.
No one at the French finance ministry was immediately available for comment.
Brazil has been vocal on one of the themes put on the table by France as G-20 chair: how to better police capital flows globally. Several emerging countries, including Brazil, have been faced with buoyant capital flows in search of higher yields, which have put upward pressure on their currencies and hurt their exports.
Countries have reacted by imposing capital controls or intervening on their currency in a unilateral way. This has prompted the G-20 to try and coordinate capital controls better, so as to avoid adverse impact on growth from disorderly moves.
The discussion on capital flows has proved contentious among G-20 members.
Brazil for one, while recognizing that more coordination is needed, has often said that countries facing a surge in capital inflows should be able to take individual measures to curb hot money flows as they wish.
Baroin and Mantega will also discuss how to increase transparency on commodity derivatives markets, another key topic on France's G-20 agenda, the person familiar with the matter said. Brazil, as one of world's largest food producers, has played a prominent role in G-20 talks on agriculture, which have been focusing on ways to tame food price volatility.
Source: http://online.wsj.com
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