Nations divided over plans to reduce global imbalances

THE world’s leading nations were divided last night over plans to reduce global economic imbalances, with China determined to head off international criticism over its huge foreign exchange reserves.

France had hoped to strike a deal at the weekend on economic indicators that would be used to monitor imbalances, including current account balances, real exchange rates and foreign exchange reserves.

In an urgent appeal for agreement, Nicolas Sarkozy, French president, asked G20 finance ministers and central bank governors to look beyond a “mechanistic approach”. “We do not have much time,” he said in Paris.