32469
IMF Reforms Clear Last Hurdle
World Economy

IMF Reforms Clear Last Hurdle

The US Senate has adopted long-awaited reforms to give emerging economies a greater say in how the International Monetary Fund is managed.
China’s voting rights will rise to 6%, from 3.8% and IMF resources will double to about $660 billion.
This is the biggest shake-up since the IMF and the World Bank were set up to manage the post-World War Two economy.
China has set up the Asian Infrastructure Investment Bank as an alternative to the IMF and the WB.The IMF reforms were agreed by its 188 members in the aftermath of the world financial crisis in 2010.
As China’s voting rights rise, the US will see its share drop from 16.7% to 16.5%. The US also retains its veto power. India’s voting rights will rise to 2.6% from the current 2.3%.
The biggest losers are European economies which will see their voting rights diminished.
China’s Central Bank said the reform “will improve the representation and voice of emerging markets and developing countries in the IMF and is conducive to protecting the IMF’s credibility, legitimacy and effectiveness”.
Last month, the IMF decided to include China’s currency, the renminbi, as a reserve currency, alongside the US dollar, the euro, the yen and the British pound.
The IMF aims to preserve economic stability and to tackle–or ideally prevent–financial crises. Over time, its focus has switched to the developing world.
The WB is the world’s leading development organization, working for growth and poverty reduction.

 

Short URL : http://goo.gl/y7BB11
  1. http://goo.gl/OUiv1e
  • http://goo.gl/TIAlhY
  • http://goo.gl/Zg8izI
  • http://goo.gl/fKKyzw
  • http://goo.gl/8HmiYV

You can also read ...

The 2017 “WannaCry” cyber attack demanded affected users wire ransom money via Bitcoin.
You don’t have to be a digital whizz kid to know that the wars...
A woman protests a planned coal-fired plant  in southern Thailand.
Southeast Asian governments are finding themselves caught...
Malaysia has shown willingness to move towards  a market-oriented mechanism.
Forty-three World Trade Organization members who participated...
Singapore to Hike GST for First  Time in Decade
Singapore is expected to raise goods and services tax for the...
South Africa Wants to Increase VAT Rates
With an economic downgrade to junk status, a slowly growing...
62% of Japan Loan Rate  Below 1%
After two years of the Bank of Japan guiding key interest...
Fitch Upgrades Greece
Fitch Ratings raised Greece’s sovereign credit rating by one...
China’s Commerce Ministry says the proposed US measures are groundless.
China said proposed US tariffs on imported steel and aluminum...

Trending

Googleplus