US: IMF quotas should reflect global weight

The statement gains significance as emerging market economies like India are seeking a larger share in the IMF quota.

Written by Press Trust Of India | Washington | Published: October 13, 2013 3:14:26 am

The United States has said that the quotas at the International Monetary Fund (IMF) should reflect that country’s weight in global economy.

“IMF quotas are the fundamental building block of the Fund,and it is important that quotas reflect countries’ weight in the global economy,” US Treasury Secretary Jacob Lew,in his address to the IMF committee on Friday said.

The statement gains significance as emerging market economies like India are seeking a larger share in the IMF quota.

The United States has strongly supported efforts to strengthen the international financial architecture over the last four years “particularly in giving the IMF a stronger financial base,and a governance structure that better reflects the global economy”,Lew said.

“We are actively working with Congress to secure legislation implementing the 2010 IMF quota reforms,” Lew said.

Noting that the US encourages all IMF members to be transparent with respect to foreign exchange intervention and reserves composition,Lew reiterated that China needs to increase its efforts to achieve a durable shift from export-led and investment-led growth to sustainable consumption-led growth.

He added that it includes more decisive actions on structural reform and moving more quickly towards a market-determined exchange rate.

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