The French President Nicolas Sarkozy again called on leaders of the 20 most advanced economies to work together for comprehensive reform of the global monetary system. “We need to create a new framework for discussion of movements in exchange rates,” said Sarkozy, adding that China is not meaningless to talk about conversion rates. As a reason for it indicates the huge reserves of foreign currency available to the Asian country. Sarkozy said that the stabilization of moving large change currency markets and raw materials will be the main topic of the G-20 are in November. It will pass under the presidency of France, as the country holds the rotating presidency of the G-20 and G-8 November. Important topic will be the need to limit the dominance of the U.S. dollar as primary reserve currency. In this respect, Sarkozy calls for action towards increasing the role of alternative currencies. Improving the coordination of economic policies at the global level is also among the priorities of Sarkozy as he said so you can be battled volatile exchange rates. This is necessary as a prevention against the accumulation of significant reserves, particularly in developing countries.
Volatile exchange rates are “real threat” to economic growth, Mr Sarkozy said in the presentation of priorities. One of his goals is the conversion rates to be put in a mechanism to prevent excessive movements. The French president, however, that not calling for a return to fixed exchange rates. Rather, his idea was to call in to join and China and through which to enhance the stability of exchange markets. Except for more serious oversight and control of exchange rates, Sarkozy calls for strengthening the control of raw materials markets. This idea is raw material to be subjected to stricter regulations similar to those for financial markets.