The U.S. and other industrialized countries are pushing to create a broad set of economic targets that would hold key countries – notably China – more directly accountable for their currency and other policies. Countries would commit to meet other, related targets and guidelines – such as avoiding excessive accumulation of foreign reserves or running an outsize current account surplus. The IMF could reprimand a country when it thinks it is accumulating excess foreign reserves or running a current account surplus or deficit that threatens the stability of the world economy
The United States has linked a faster rise in China’s currency to a deal that would give the Asian country more sway at the International Monetary Fund. The top Chinese representative at the IMF talks, Zhou Xiaochuan, the head of China’s central bank, has already rejected any link between the two issues.