Russia will not support a U.S. initiative to limit current account balances to four percent of gross domestic product (GDP), a Russian delegation source at the G20 summit said on Thursday.
"As part of our work to reduce global imbalances, Russia does not support the U.S. proposal to impose curbs of four percent of GDP on current account deficits or surpluses in a short or medium term," he said.
Last month the U.S. put forward the idea of current account limits as a method of measuring when imbalances can cause problems in the global trading system and become unsustainable.
The proposal was supported by most G20 countries, but was strongly opposed by emerging market states.
"We need a more flexible approach than that proposed by the U.S., as there are countries where surplus is an equilibrium phenomenon and is caused by, for example, a demographic structure or a high share of natural resources exports. The IMF should to take into account features and economic conditions of each country, when developing specific recommendations," the source said.
SEOUL, November 11 (RIA Novosti)
