India Expects G20 Summit 'to Focus on Financial Stability'.

NEW DELHI: India said on Tuesday that it expected the upcoming summit of the Group of 20 nations will seek to stabilise the global financial system.

Indian Prime Minister Manmohan Singh is to fly to Seoul on Wednesday for the two-day meeting of leaders of 20 major industrial and developing nations later this week.

Foreign Secretary Nirupama Rao said finance ministers from the G20 economies in October "broadly" agreed to "move towards more market-determined rate systems and to refrain from competitive devaluation of currencies."

Following that meeting, "the Seoul summit can be expected to further suggest prescriptions to stabilise global financial currency markets and reduce volatility in global financial systems," Rao said in New Delhi.

Disputes over foreign exchange rates and the world's lopsided trade are set to dominate discussions this Thursday and Friday between leaders of the G20.

G20 finance ministers last month pledged to work to reduce excessive current account imbalances and maintain them at "sustainable" levels -- forcing nations such as China and Germany to rely less on exports to propel economic growth.

The ministers also tried to cool down talk of a currency war by vowing to move towards more market-determined exchange rate systems and undertook to "refrain from competitive devaluation of currencies".

Source : economictimes.indiatimes.com