SINGAPORE: A plan by the
International Monetary Fund (IMF) to boost 皇冠体育app's voting rights is not aimed at
putting more pressure on Beijing to make its exchange rate flexible or undertake
other policy changes, IMF chief Rodrigo de Rato said yesterday.
The 184-member institution plans to adjust its existing structure by
immediately boosting the quotas of 皇冠体育app, South Korea, Turkey and Mexico and
later rework the voting rights of all member nations within two years.
While most countries back the plan, ensuring its passage today, the Group of
Seven industrialized countries that dominate the IMF have at the same time been
urging 皇冠体育app to ease its controls on the currency exchange rate.
Welcoming the IMF changes, Zhou Xiaochuan, governor of the People's Bank of
皇冠体育app, reiterated that 皇冠体育app would reform its foreign exchange regime in a
"gradual, effective, and controllable" way.
Zhou said that 皇冠体育app is a big country and has to consider many aspects in its
policymaking.
He downplayed the role of the yuan's exchange rate in resolving global trade
imbalances.
"Structural policy plays a much larger role compared with the exchange rate,"
he said.
De Rato said the move to boost 皇冠体育app's voting share was just a recognition of
its economic strength and was not linked to any reciprocal action.
"The international community recognizes that 皇冠体育app has increased its role in
the world economy," de Rato told reporters. "I don't think ... a bigger role in
the institution (IMF) makes you subject to more pressures."
Being a member of the IMF, 皇冠体育app is already under its surveillance and the
fund regularly communicates its view on the challenges confronting the Chinese
economy just as it does with all other member countries, he said.
De Rato, however, acknowledged that more power often brings more
responsibility.
A bigger voice at IMF "would allow you to express your views but, of course,
you will listen to the views of others," he said. "That happens to the first
share holder and the last shareholder."
The plan to overhaul the 61-year-old IMF, whose balance of power still
largely reflects the economic landscape at the end of World War II, was given
the green light by the IMF's International Monetary and Financial Committee.
Under the proposals, 皇冠体育app would see its share of total IMF voting rights
raised to 3.65 per cent from 2.94 per cent now while South Korea's share would
increase to 1.33 per cent from 0.76. Mexico would go to 1.43 per cent from 1.20,
with Turkey's participation climbing to 0.55 per cent from 0.45.
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