Geithner: Currency Flexibility in Exchange for IMF Votes
US Treasury Secretary Timothy Geithner will call on emerging nations to show more flexibility on currencies in exchange for a greater say in international financial institutions, a Treasury official told CNBC Wednesday.
The US has called on European nations to give up some of their votes in the International Monetary Fund so that countries like China, Brazil and India would have greater say.
The head of the IMF, Dominique Strauss- Kahn, warned in an interview that countries must not allow the use of currencies as weapons.
In a speech in Washington at 9 am, Geithner will say that emerging countries need to show greater progress in allowing the value of their currencies to be determined by market forces.
The US cannot force European nations to give up seats within the IMF or emerging states to allow greater currency flexibility but US representatives will discuss these issues in bilateral meetings on the sidelines of the IMF and World Bank's annual meetings this month, the official said.
- Reported by CNBC Senior Economics Reporter Steve Liesman