This is the VOA Special English Economics Report.
of the world's largest rich and developing economies met Thursday in London. The
Group of Twenty agreed to an additional trillion dollars for the International
Monetary Fund and other lenders to strengthen the world economy and trade. President
Obama says the G-20 summit will be a "turning point" in seeking
global economic recovery.
The leaders promised to keep closer watch over banks,
hedge funds, credit rating agencies and executive pay. They also agreed to act against
countries that provide tax shelters for the wealthy. And they agreed to form a
supervisory group to warn of problems in the world financial system.
The G-20 is nineteen countries and the
European Union. Members represent about ninety percent of world economic
activity and eighty percent of trade.
Finance ministers and central bankers
formed the group ten years ago to give more attention to developing nations.
Leaders met last November for the first time. They plan to meet again in September.
Developing economies like China, India
and Brazil want greater influence over international financial policy and
groups like the I.M.F. Western countries now see developing nations as
important partners in the effort to get the world economy growing again.
currency most commonly used in foreign trade is the dollar. But last week, the
governor of the Chinese central bank suggested that the dollar be replaced as
the world's leading reserve currency. Zhou Xiaochuan called for a new currency
disconnected from individual nations -- such as using what are called Special
International Monetary Fund created the Special Drawing Right, or S.D.R., forty
years ago. The value is based on several major currencies. Today the I.M.F. and
some other international organizations mainly use it as an accounting tool.
Last week a United Nations group of experts also urged
a new global reserve system -- an expanded version of Special Drawing Rights.
At the G-20 meeting, Russian President Dmitri Medvedev
called for a study of a new reserve currency. He said it would be wise to
support the creation of strong regional currencies and use them as the basis,
possibly also using gold.
Few experts see a threat
to the dollar, at least for now.
that's the VOA Special English Economics Report, written by Mario Ritter. For
more on the London summit, go to voaspecialenglish.com. I'm Steve Ember.