The Group of 20 advanced and emerging economies are finalizing details on the currency and current account imbalance issues following overnight negotiations, the government said Friday.
The local summit preparation committee said vice finance ministers and the Sherpa group comprising representatives of G-20 leaders are trying to come to agreement after world leaders called for a compromise during the working dinner session held late Thursday.
South Korean President Lee Myung-bak stressed the need to maintain solidarity on economic issues with other leaders concurring that cooperative
relations are important for future growth, committee spokesman Kim Yoon-kyung said.
Without going into details the official said there are some contentious issues, but there is optimism that a compromise may be reached.
"There is considerable will among leaders to reach an understanding in Seoul," Kim said, hinting that the communique to come at the end of the two-day summit will be an improved version of the consensus reached in Gyeongju last month.
At the Gyeongju meeting, G-20 finance ministers agreed to move toward a more market-determined exchange system that reflects underlying economic
fundamentals and to refrain from competitive devaluation of currencies.
They also said countries should pursue a full range of policies conducive to reducing excessive imbalances to sustainable levels, although they did not elaborate on details.
Other government sources said that working-level officials have effectively reached a broad understanding although no numerical targets to link current account deficits or surpluses with the gross domestic product have been reached due to opposition.
Details of the accord will be announced at 4 p.m. by President Lee who is chairman of this year's G-20 summit.