THE G24 group of developing nations yesterday rejected an attempt by the IMF managing director Dominique Strauss-Kahn to link the resolution of the so-called “currency war” to increased representation for emerging markets and developing countries (EMDCs).

“There is no linkage between the two,” said Pravin Gordhan, the South African minister of finance.

“We need to give the IMF more legitimacy,” Mr Gordhan said. “Realignment must lead to a shift in quotas from the haves to the have-nots . . . The IMF and World Bank have been predominantly controlled by G7 countries . . . that must change.”

The international aid group Oxfam also objected to linkage between IMF governance and currency disputes. “IMF governance reform should not be held hostage to the fight over exchange rates,” said Oxfam’s spokesperson Elizabeth Stuart. “Emerging markets need their rightful place at the table irrespective.”

The G24 wants a shift of representation by at least five percentage points from advanced economies to EMDCs. It is supported by the US, who want EMDCs to play a dominant role in the IMF’s 24-member board. Europeans traditionally hold eight or nine seats on the board, as well as the managing director’s job.

“The IMF’s legitimacy, relevance and effectiveness in implementing its mandate depends critically on addressing the imbalance in voice and representation,” said the communique issued by the G24.

The group called for a third chair on the board for sub-Saharan Africa, and said the heads of the IMF and World Bank should be selected “without regard to nationality”.

Robert Zoellick, president of the World Bank, spoke of the “need to manage the tensions” created by uneven growth and warned of the risk they could “slide into conflict or forms of protectionism”.

Rather than scold EMDCs for their undervalued currencies, Mr Zoellick said that “one particular bright spot has been the growth in developing countries” which are “expected to account for half of global growth in the several years ahead”.