ECONOMY

PBOC’s Pan Says Reform of IMF Quota System ‘Critical’

Published: Feb. 19, 2025 8:50 p.m. GMT+8

00:00

00:00/00:00

Listen to this article 1x

China’s central bank governor has renewed his call for reform of the International Monetary Fund’s (IMF) quota system to give emerging market economies, key drivers of global growth, a bigger say in the running of the multilateral lender.

“The IMF quota realignment is critical for the IMF’s governance, representativeness, and legitimacy,” Pan Gongsheng said Sunday at a conference co-hosted by the IMF and Saudi Arabia in the Arabian oasis city of Al Ula.

PBOC Governor Pan Gongsheng delivers a keynote speech at the seminar on emerging market economies co-hosted by the IMF and Saudi Arabia in Al Ula Sunday. Photo: The People’s Bank of China

“The current quota shares can no longer reflect the actual position of emerging markets in the global economy, which requires the IMF to accelerate its quota realignment reforms,” he said, according to a transcript of his comments posted on the People’s Bank of China website.

You've accessed an article available only to subscribers

Subscribe today for just $.99.

VIEW OPTIONS

Unlock exclusive discounts with a Caixin group subscription — ideal for teams and organizations.

Subscribe to both Caixin Global and The Wall Street Journal — for the price of one.

Share this article

Open WeChat and scan the QR code

DIGEST HUB

Digest Hub

Back

Explore the story in 30 seconds

China's central bank governor, Pan Gongsheng, advocates for IMF quota reform to boost representation for emerging markets, citing outdated governance structures.
Emerging markets' increased IMF influence is crucial due to geopolitical and economic challenges, including protectionism and global economic slowdowns.
The IMF's latest 2023 review raised total quotas to around $960 billion SDRs, with no formula changes, but aims to realign quotas reflecting global economic shifts.

AI generated, for reference only

What Happened When

By 2010：: The IMF announced quota and governance reforms after pressure from China and other emerging markets, including Brazil, Russia, and India.

December 2023：: The IMF's board decided on an increase of 50% in each member country's existing quota, bringing the total quota to 715.7 billion SDRs, or around $960 billion, but there was no change to the quota formula or quota shares.

October 2024：: Mohammed Aljadaan, Minister for Finance of Saudi Arabia, made a statement as chair of the IMF's International Monetary and Financial Committee, acknowledging the urgency and importance of realignment in quota shares.