G20 will be top world economic forum

The dramatic shift was announced by the White House as President Barack Obama hosted his first major summit in Pittsburgh, which was marred by occasional violence as anti-capitalist protesters clashed with police.

"Today, leaders endorsed the G20 as the premier forum for their international economic cooperation," a statement said.

"This decision brings to the table the countries needed to build a stronger, more balanced global economy, reform the financial system, and lift the lives of the poorest."

The announcement came as G20 leaders closed in on a deal Friday to tighten financial regulations after last year’s meltdown.

A draft text, excerpts of which were obtained by AFP, said the summit would agree that bankers’ bonuses should be curbed and call for government stimulus measures to be maintained until the global economic recovery was cemented.

Leaders would advise "limiting bonuses to a percentage of total net revenues when it is inconsistent with maintenance of a sound capital base," a G20 source said, quoting from the draft.

"We’ll avoid any premature withdrawal of stimulus," the source said, adding that measures which have seen trillions poured into the key sectors over the past year should be maintained "until a durable recovery is secured."

A Chinese central bank official also predicted a move on International Monetary Fund voting rights, telling journalists that developing countries had for too long been under-represented in key financial institutions.

"We believe that at tomorrow’s summit a very important political decision will be made on this matter," Xie Duo said on the sidelines of the summit.

World leaders have pledged to work for comprehensive IMF reform and there is a long-term consensus on the need to address imbalances in voting power, but some European nations have balked at losing their influence.

For Brazil, China, India and other emerging countries, it is crucial to achieve a breakthrough in negotiations in Pittsburgh so the IMF can endorse the reform at its annual meeting on October 6 to 7 in Istanbul.

President Barack Obama and First Lady Michelle Obama opened the two-day summit with a gala dinner in Pittsburgh -- chosen as host city to showcase its stunning economic transformation from down-at-heel steel town to high-tech hub.