What is the G10?
G10 stands for 'The Group of Ten', but is a group of the 11 leading industrial countries; namely: Belgium, Canada, France, Germany, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom and the United States. They meet on an annual basis to discuss economic, monetary and financial matters.
Where have you heard about the G10?
You might hear a news report about how currencies are moving in relationship to one another, or you might hear that a particular currency is undervalued or overvalued in relation to other G10 currency from that group of nations.
What you need to know about the G10.
Core to the G10 principles is that all participants have signed up to General Arrangements to Borrow (GAB) . This is a borrowing arrangement between member countries that can be used if the International Monetary Fund cannot fully fund or service a member country's borrowing needs. Non-G10 countries can also borrow money under certain circumstances.
The GAB was established in 1962 by the core G10 participants. It was strengthened in 1964 with Switzerland participating – but the name of the G10 remained the same.
The Ministers of Finance and central bank Governors of the Group of Ten meet as needed, usually in connection with the meetings of the International Monetary Fund and the World Bank. G10 central bank governors also tend to gather together on the fringes of meetings for Bank for International Settlements (BIS).