The United States, or through the IMF share reform The third stage

By Matthew Grant,2015-10-25 14:32
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The United States, or through the IMF share reform The third stage

    The United States, or through the IMF share reform

    The third stage

    The United States, or through the IMF share reform "third China"

    In 2010 the share reform (Quotareform) is consideredThe international monetary fund;IMF) was established for more than 70 years the most important governance reform.The reform will give emerging markets more say, to be more reasonable to reflect the latest pattern emerging markets rising economic status.However, due to the often hinder of the U.S. congress has failed.However, the situation in the near future, or will be a breakthrough.

    According to the report, "on the morning of December 16, the latest release of America's comprehensive spending bill approved the share reform, were included in the bill as part of the budget deal."The Obama administration had to vote for the reform in 2010, but then stalled because of the obstacles of the United States congress.The reform is of great significance for China, once implemented, more than 6% of the share transfers from high representative members to under-represented emerging markets and developing countries, while China's share will rise sharply from the current 3.994% to 6.390%, jump as second only to the United States (16.75%), Japan (6.98%) after the third largest share, marks China's comprehensive strength and global influence significantly increased;Poor countries share proportion and the right to vote will be maintained, to ensure its voice.

    On the same day, close to the IMF told "first financial daily", "China host the G20 summit in September next year through reform or a big probability event. Before and after the reform of the main resistance comes from the United States congress, the IMF has always backed by share reform."In fact, in the IMF -The world bank2015 spring meetings, the IMF deputy managing director zhu min said, the IMF once again to the United States can't approved quota reform in 2010."At the same time, we also made it clear that we can no longer wait for the us government and congress, we have begun to start plan B, the meeting to start to give recognition."

    China's "no" position

    Why the United States congress to have so much influence?According to the IMF agreement, significant matters by 70% ~ 85% majority decision in particular, developed countries have more than half of the voting rights at the IMF, the current has 17.9% of the voting rights in the United States, is the only country with a "veto" (vetopower).

    Some republicans have so far, experts said, is to reform the resisters.Capital increase on the one hand, due to the tight, rejection, on the other hand, for "political game".Such as China, Russia and Iran will have a greater say in the IMF after the reform, the quota and voting rights will be reduced.

    Specifically, total reform will enable the IMF share doubled, from about 238.4 billion the SDR (Special Drawing Rights) increased to about 476.8 billion SDR (at the current exchange rate $720 billion), are increased and that is what America's congress repeatedly to stop.In addition, China will have the third big share.

    Long-term studies the IMF share reform development research foundation vice-chairman and secretary-general of Shanghai joey told the "first financial daily" said that at present, the United States congress in under the double pressure of public opinion and practical considerations, prior to the opening of the G20 summit in September next year through the IMF share reform possibility is very large, such as spending bill has left the matter includes, of course there will be some additional conditions."The main game between the government and congress still exists in the United States. The real public opinion pressure mainly comes from the United States, it would be unwise to the accused by reform; the real pressure is, the internationalization of the RMB has been overwhelming."

    , for example, the foreign media revealed that Bloomberg (Bloomberg), founder and former New York mayor Michael Bloomberg (MichaelR. Bloomberg) and former Treasury secretary Henry paulson (HenryPaulson), Mr Geithner (TimothyGeithner) and so on a number of former U.S. politicians to form a working group, is committed to promoting the yuan trading on Wall Street, the working group at the same time hope for the trading and settlement in the United States to establish a framework for open a door for the yuan to enter the United States.Bloomberg has since confirmed this to "first financial daily".

    "This is a significant action, even not less than RMB into the SDR basket, the meaning of the yuan to enter the United States and other countries. Visible, under the double pressure, share reform through congress next year is promising."Joey told reporters.

    The IMF as a born after world war ii veteran multilateral institutions, in recent years also because of the structure of the rigid under certain pressure, if not the share reform, the emerging markets say cannot further reflected in the IMF, which will further affect the legitimacy of the fund, the fund can't keep pace with The Times.Actually, led by China in the Asian infrastructure investment bank (hereinafter referred to as "the bank") is supported by many countries in Europe, after the pressure has been highlighted, despite official all agreed that the IMF and the bank will be cooperation and win-win.

    Additional conditions remained

    Congress, however, certain conditions are put forward.

    The financial times said, such as the comprehensive spending bill, congress should be on the issue of approval of the IMF lending for special play a bigger role.It also requires us to seek to abolish the "systemic immunity" passed in 2010, when the introduction of the purpose of the exemption is to enable the IMF to participate in European leading the country's economy.

    According to the law, on the IMF board approved higher than normal ceiling "exception to get" (exceptionalaccess) funding resources before the vote, the administrative authorities to inform congress at least seven days in advance.The bill also requires a study, should look at the IMF to mortgage loans required under those terms, this means that countries like Greece, if you want to get relief funds may need to put a large part of the infrastructure, such as port and power plant control to the IMF.

    It is understood that the IMF declined to comment on these underlying conditions, and said to the overall share of the us congress still cautious about the prospect of reform.The Treasury Department declined to comment.

    "The United States will not give up the IMF the multilateral institutions. But it is worth noting that the us had no significant pressure is never willing to change the status quo, to maintain the status quo is always" comfort zone "of the United States."Joey's the "first financial daily" said that the process of RMB internationalization may be a "significant pressure", especially in the yuan after entering the SDR.

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