INTERVIEW - EU presidency: FX must be part of rebalancing

By Jan Strupczewski

ST ANDREWS, Scotland (Reuters) - Group of 20 plans to coordinate global economic policy for more harmonious world growth should take into account foreign exchange rates, current European Union president Sweden said on Friday.

Swedish Finance Minister Anders Borg, who holds the rotating presidency for six months, also called on the United States to make a commitment to financing the fight against climate change after European leaders agreed on estimates of how much cash would be needed globally.

A meeting of G20 finance ministers and central bankers in Scotland this weekend is expected to avoid direct reference to the thorny issue of currencies, particularly in relation to China's inflexible yuan currency and a weak U.S. dollar.

"Foreign exchange policy is obviously reflecting the imbalances we have seen, so if we want to have a framework for global stability, we will also have to take into account foreign exchange rates," Borg told Reuters in an interview.

He said a framework for global policy coordination would help shape G20 meetings after leaders of the top 20 developed and emerging economies decided in September the G20 would be the main forum for global economic policy talks.

"What the framework would do is to organise those discussions so that we would be clear on the key issues -- imbalances, asset prices, financial stability, fiscal policy and so forth," he said.

But he said no firm numerical targets on any indicators would emerge from the meeting, but hinted at the issue of the huge trade imbalance between China and the United States which analysts say is key to restoring economic equilibrium.

"If people are going to steer out of the very, very large surpluses that we are seeing, they must have confidence that other people will also do their part," Borg said.