PARIS, Feb 18 (Reuters) - China said on Friday it opposed including measures on exchange rates and foreign exchange reserves in a package of indicators a G20 policymakers’ meeting is trying to agree on to gauge global imbalances.
Chinese finance minister Xie Xuren also said the measure of current account should be replaced by one of the trade balance. China’s trade surplus has been falling recently.
“We think it is not appropriate to use real effective exchange rates and reserves,” the minister said at a meeting of Russian, Brazilian and Indian counterparts, who collectively make up the BRICS.
“Emerging markets, to deal with financial crises and economic shocks, they need to set up a certain amount of reserves,” he said.
“We need to substitute the current account with the trade balance,” he added.
The BRIC meeting hours before they meet with the rest of the G20 to try to thrash out a deal on indicators to be used as benchmarks to correct imbalances in the global economy. (Reporting by Toni Vorobyova and Abhijit Neogy, writing by Mike Peacock)