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 US 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.

He said G20 countries should set up and communicate how they would end government support for economies to stay credible after an economic downturn that has savaged public finances.

European finance ministers, meeting in Brussels on Monday and Tuesday are likely to firm up their commitment to begin deep budget deficit cuts from 2011 at the latest after European Commission forecasts showed on Tuesday economic recovery would continue in 2010 and strengthen in 2011.

The ministers have made the 2011 deadline conditional on the Commission's forecasts showing growth would be self sustaining and strengthening.

"We are now seeing some of the prerequisites fulfilled and yes there will be a very thorough discussion next week on the date issue," Borg said.

Climate change cash

Borg also said it was now time for other key players in efforts to restore the environment to commit concrete sums to the fight against climate change, as Europe did last week.

The financing, which Europe estimates at 100 billion euros annually by 2020 and of which international public money would be in the range of 22-50 billion euros per year by 2020, is to be finally agreed on at a summit in Copenhagen in December.

"We are only 30 days away from Copenhagen and we need to make progress on fast track financing," Borg said.

"Europe has made headway, we mentioned numbers, we are ready to take the fair share of that. I think it will be quite necessary to see some other people move, especially the US, on the numbers and commitments to fast track financing," Borg said.

Talks on agreeing a budget for the cost of dealing with climate change at the last meeting of finance ministers and central bankers in London in September went nowhere. Asked if there could be hard commitments in St. Andrews, Borg said:

"I expect it will happen before Copenhagen, otherwise Copenhagen will fail."