Achievements at G-20 meet significant, says Pranab

"What we have achieved is significant," Mukherjee said at the conclusion of the G-20 conference, where members endorsed crucial reform of the International Monetary Fund (IMF) and asked nations to move toward a "more" market-determined exchange rate and desist from "competitive devaluation of their currencies".

The decision to give a 6 per cent quota (voting rights) to emerging economies in the IMF, which would see India jump from 11th position to 8th in terms of voting rights in the international body, was announced at the end of the ministerial conference of the G-20, a club of developed and developing nations.

As regards the ongoing currency war, Mukherjee said, "What we expected and particularly what I have commented, that we will have to resolve the (currency) issue through dialogue and not through confrontationist position... (It has been) substantially agreed to."

Moreover, the minister added, "The development agenda have found place (in talks) and leaders will give their seal of approval at the Seoul Summit to be held on November 11-12."

The G-20 ministers, he added, have also agreed not to resort to "unilateralism" to deal with complex issues."Another phraseology has been used is that there should be no unilateralism and there should be cooperation... unilateral devaluation should not be encouraged," he said.

Mukherjee had recently suggested in Washington that the currency issue could only be resolved through dialogue and consensus and not through confrontation.

"My approach is that we should try to engage the countries into negotiations and build up a consensus through which the matter could be resolved... (These issues) cannot be resolved through confrontation," he had said.

While the US wants the China to allow its currency, the yuan, to appreciate in line with market forces, the Chinese government has been resisting the move, as it would hurt the country's exports. The currency war prompted some other countries, like Japan, to weaken their currencies by pumping more funds into the market.
India, too, has been affected by the global currency crisis, which saw the rupee appreciate by over 5.5 per cent since January to the detriment of country's exports.

The communique issued at the end of the two-day conference asked the member countries to move towards "more" market determined exchange rate and desist from "competitive devaluation" of currencies.