PARIS, Aug. 25 (Xinhua) -- France which is due to head G-20 and G-8 forums called on Wednesday for financial monetary system reform and pledged measures to monitor raw materials prices fluctuation to avoid any potential economic and financial downturn.
"What is now desirable, even necessary, is to develop instruments to avoid excessive currency volatility, the accumulation of imbalances, emerging countries' attempts to have higher level of foreign exchange reserves...," French President Nicolas Sarkozy said while addressing ambassadors.
He reiterated that the world has become multipolar and could no longer be dominated by a single currency, and the G20 is expected to replace the G7 as a forum for international debate on these issues.
France will alternatively chair the G-20 from November and the G-8 from January 2011.
Sarkozy confirmed his intention to discuss in G20 ways to fight against the wide fluctuations of raw materials prices, primarily agricultural, citing the violent movements experienced by those of wheat.
He estimated that raw materials markets should be regulated according to decisions taken by the first G20 summit on financial derivatives products.
"For agricultural raw materials, several opportunities could be explored: market transparency; inventory policies, but also the creation by international financial institutions of insurance- tools to allow importers to protect themselves from price volatility," he added.
Regarding energy prices, the French president said France would suggest proposals to improve market transparency and begin "a dialogue between producers and consumers to limit price fluctuations."
He proposed the formation of a G20 "secretariat" to oversee the implementation of important decision of summit, with a role in development et climate measures.
The G-20, a forum composed of 19 countries and the European Union, regularly convenes financial ministers and central governors from members for cooperation and consultation on matters in relation with the international financial system.
Collectively, the G-20 economies cover two-third of the world population and comprise over 90 percent of global gross domestic product.