G20 pledges fiscal consolidation, move on FX

PARIS, Oct 15 (Reuters) - The Group of 20 leading economies agreed on Saturday that advanced economies would consolidate their fiscal deficits and emerging economies like China would continue their move toward greater exchange rate flexibility. "Advanced economies, taking into account different international circumstances, will adopt policies to build confidence and support growth and implement clear, credible, specific measures to achieve fiscal consolidation," a draft G20 communique from a meeting of finance ministers and central bankers said. "Surplus emerging market economies will accelerate the implementation of structural reforms to rebalance demand toward more domestic consumption, supported by continued efforts to move toward more market-determined exchange rate systems and achieve greater exchange rate flexibility to reflect economic fundamentals." The G20, accounting for 85 percent of the world's economy, also said the International Monetary Fund must have adequate resources, but the ministers deferred any decision on this to the G20 summit in Cannes on Nov. 3-4. Keywords: G20/MOVES COPYRIGHT Copyright Thomson Reuters 2011. All rights reserved.