G20 leaders agree to IMF reform

Finance ministers from the G20 leading economies have agreed to reforms of the International Monetary Fund (IMF), giving major developing nations more of a say.



At a meeting in South Korea, the ministers agreed a shift of about 6 per cent of the votes in the IMF towards some of the fast-growing developing countries.

Those nations will also have more seats on the IMF's Board, while Western Europe will lose two seats.



But the United States will retain the veto it has over key decisions.

Such decisions require an 85 per cent vote and Washington holds 17 per cent under the IMF's weighted voting system.



The ministers also agreed to refrain from competitive devaluations of their currencies and move towards more market-determined currency systems.



The talks in the city of Gye-ongji come against a background of strains in financial markets which some have called a currency war.