PARIS, Feb 19 (Reuters) - The Group of 20 dropped currency reserves and provided compromise wording on other indicators in a list of measures it will use to assess global economic imbalances, a post-meeting communique showed on Saturday.
The deal, struck after two days of deadlocked negotiations in Paris, gives ground to China, who had resisted the inclusion of reserves and the current account balance in the list.
There was no mention of reserves and rather than the current account and real effective exchange rates, the group agreed to use “the external balance composed of the trade balance and net investment income flows and transfers, taking due consideration of exchange rate, fiscal, monetary and other policies.”
“We agreed on a set of indicators that will allow us to focus, through an integrated two-step process, on those persistently large imbalances which require policy action,” the communique said. (Reporting by Daniel Flynn, writing by Patrick Graham, editing by Mike Peacock)