India to discuss currency issues at G20 summit

India to discuss currency issues at G20 summitIndia will join some other emerging economies to raise the issue of currency volatility at the G20 summit in St Petersburg next week, according to Planning Commission deputy chairman Montek Singh Ahluwalia.

Prime Minister Manmohan Singh is set to attend the summit of the leading economies in Russia at time when the volatile currency markets have devalued the several emerging market currencies and have affected the growth. The Indian government has said that the indications form the US Federal Reserve that it will start rolling back its stimulus package, has affected the valuation of several currencies.

The US central bank's fiscal stimulus package helped push money from America to emerging markets like India, Brazil and South Africa. The Brazilian real, Indonesian rupiah and the South African rand have all fallen significantly during the previous week. The BRICS nations including Brazil, Russia, India, China and South Africa have expressed concern over the large outflow of capital form their economies.

India and Brazil have both taken measures to limit liquidity after a fall in their currencies. The BRICS have also started working on the creation of a $100 billion reserve fund and a joint development bank.