MOSCOW, Feb. 15 (Xinhua) -- Finance ministers and central bank officials of the Group of Twenty (G20) have been seeking to strengthen financial supervision and avoid currency devaluations in the Moscow meeting, a Chinese official said here Friday.
Financial supervision remains a major issue in the G20 process, Chinese Vice Finance Minister Zhu Guangyao told the Chinese media on the first day of the closed-door meeting scheduled on Friday and Saturday.
Zhu cited the fact that the United States has vowed to implement the global banking regulatory standard Basel III in the coming months while the European Union has submitted the bill for parliament approval.
Though the implementation has been prolonged, the United States and Europe have already recognized the significance of fulfilling their commitments, he said.
The Basel III rules on bank capital adequacy were worked out by the Basel Committee on Banking Supervision and the Financial Stability Board (FSB) in response to the global financial crisis. They strengthen bank capital requirements and introduce new regulatory requirements on bank liquidity and capital adequacy ratio.
G20 finance ministers and central bankers demanded decisive movements from the U.S. and European sides and welcomed the latest promising signal, Zhu said, adding efficient implementation of the Basel rules will enrich the contents of the G20 accord and enhance the group's credibility.
Meanwhile, the effect of the ultra-loose monetary policies adopted by some developed economies has aroused concerns from developing countries, said the Chinese official.
During the Moscow meeting, developed countries have also pledged to consider the spillover effect of their macro-economic policies, especially the monetary policies on world economy in general and developing countries in particular.
There will be a detailed description of this issue in the final communique issued at the end of the two-day meeting, Zhu said.
As for the exchange rates issue, Moscow meeting sticks to the basic principles outlined in the Los Cabos declaration by G20 leaders last June in Mexico, Zhu noted.
Exchange rates should be determined by market fundamentals, and the competitive devaluation of currencies should be avoided, he said, stressing that the latest statement issued by the Group of Seven (G7) on exchange rates has nothing to do with the Moscow meeting.
G7 is composed of the United States, Japan, Germany, Britain, France, Canada and Italy.
International currency system reform is another main topic of the meeting. Participants have been discussing measures to implement the 2010 Seoul summit agreement on reforming international financial institutions and IMF quota, Zhu said.
The current meeting hosted by Russia during its G20 presidency poses a good chance for Moscow to contribute to the G20 process and global economic growth, Zhu said.
As strategic partners, China and Russia have kept close contact over the meeting and discuss major policy issues during the meeting, the Chinese official said, adding China will fully assist Russia in hosting a successful meeting so as to jointly contribute to stable global economic growth.