INTERVIEW-Korea's G20 summit will not discuss yuan- min

Published 09/23/2010, 01:43 PM
Updated 09/23/2010, 01:48 PM

PARIS, Sept 23 (Reuters) - Korean Finance Minister Yoon Jeung-hyun said on Thursday it would not be appropriate for a G20 summit in Korea this year to discuss the level of China's yuan currency, despite U.S. pressure for faster appreciation.

Yoon, currently on a tour of several G20 nations to prepare the groundwork for the November summit in Seoul, said he believed the meeting would endorse without problems the Basel III deal on bank capital ratios agreed by regulators this month.

But he said there was not much support within the G20 for a financial transactions tax, which has been floated by leaders including France's President Nicolas Sarkozy and Germany's Angela Merkel.

He also said measures to address the risk of banks considered too big to fail, which the G20 has entrusted to the Financial Stability Board, "will take some time".

Asked whether calls by US officials for China to let its currency appreciate more rapidly would be discussed in Korea, Yoon said: "By the nature of the G20, which is an open forum, we may discuss for example the general approach toward foreign exchange rates ... or the impact foreign exchange could have on the global economy."

"But aside from that, I do not believe that it is appropriate to have a discussion regarding the foreign exchange rate or level of a specific country," Yoon said, in comments translated from Korean by his official interpreter.

The minister also said he expected an agreement would be reached in Korea before the summit on reform of the IMF Executive Board and its quota system, which big G20 emerging economies say underestimates their importance.

"These issues, the key (IMF) issues, will be dealt with in a package approach," said Yoon. "I believe that those issues regarding the IMF and its reform will come to a conclusion in Korea before the Seoul summit." (Reporting by Daniel Flynn; Editing by Ron Askew)

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