MercoPress. South Atlantic News Agency

Energy and IMF reform in G-20 financial agenda

IMF Managing Director Rodrigo Rato, World Bank President Paul Wolfowitz and Federal Reserve Chairrman, among other outstanding figures from financial circles are scheduled to take part in the G-20 discussions this weekend in Australia.

Deputy Treasury Secretary Robert Kimmitt and Chairman Bernanke will represent United States at the annual meeting of finance ministers and central bank presidents of the Group of 20 nations, which includes the world's wealthiest countries and major developing nations such as China, Brazil and Australia.

The group was formed in 1999 in an effort to develop better economic coordination in the wake of the 1997-98 Asian financial crises.

Kimmitt told reporters that discussions Saturday and Sunday in Melbourne would focus on what ways to improve the operation of global energy markets and further steps needed to be taken to reform global financial institutions such as the International Monetary Fund and World Bank.

The Bush administration is pushing for the IMF to play a greater role in monitoring how countries implement their currency policies. The administration wants IMF support for its drive to pressure China to overhaul its currency regime as a way of dealing with America's soaring trade deficit.

U.S. manufacturers contend that China is artificially depressing the value of its currency by as much as 40% in order to make Chinese goods cheaper for American consumers and U.S. products more expensive in China. Last week on mounting trade surpluses China reached the benchmark of a trillion US dollars in international reserves.

Bernanke will participate in the discussion on a third agenda item - how countries need to prepare for looming demographic challenges, revealed Kimmitt. Last month Bernanke warned in a speech that the burden in the United States from the impending retirement of 78 million baby boomers would impose severe strains on the federal budget and the U.S. economy unless Social Security and Medicare were revamped.