Negotiators have failed to agree targets to reduce global economic imbalances on the first day of the two-day G20 meeting in Paris. The countries want to better coordinate economic policies to avoid a repeat of the 2008 global financial crisis.
The International Monetary Fund will warn G20 finance ministers this weekend of growing risks to the world economy from surging food prices and public finances while also advocating a somewhat weaker dollar.
Brazil reiterated opposition to a French plan to impose regulation on commodity prices, saying it could have negative effects on major suppliers such as itself. Brazil is totally opposed to a mechanism of control or regulation of commodity prices, Finance Minister Guido Mantega told reporters, reiterating a position he gave last week.
Rising food prices have driven an estimated 44 million people into poverty in developing countries since last June as food costs continue to rise to near 2008 levels, according to new World Bank Group numbers released ahead of the G20 Meeting of Finance Ministers and Central Bank Governors in Paris.
Japan's finance minister made it clear Tuesday that Tokyo is particularly interested in discussing ways to deal with the problem of strong capital inflows into emerging economies when he meets with officials from the Group of 20 industrial and developing nations in Paris later this week.
Argentina’s Economy Minister Amado Boudou heads to France this week to participate in the G20 ministers meeting and will take advantage of the trip to further advance tentative negotiations to resolve the defaulted debt Argentina has with the Paris Club.
Brazil and Argentina came out Friday against a French proposal to be put to the G20 to regulate commodity prices whose recent rises are blamed for a spike in food costs.
France and the U.N. food agency FAO warned on Friday about the risk of a new global food crisis and ensuing riots, calling for greater regulation to curb speculation on commodities markets.
The Group of 20 (G20) nations reached in Korea a dramatic deal on Saturday as China, the United States agree to avoid “currency war” and to refrain from having too much trade surplus or deficit.
Brazil's government will implement new reserve requirements on credit operations undertaken by the nation's banks, in compliance with the latest changes in the Basel Index, by 2012, the Central Bank of Brazil said in a statement Monday.