As part of a Budget Bill US Senate ratifies IMF reforms [ Current Affairs ]
In the International Monetary Fund (IMF) the United States (US) Senate has been ratified reforms to boost the representation of emerging economies as part of a budget bill. Now it will go to President Barack Obama for agreement, after the reforms ratified in the legislation are in line with the proposed 2010 Quota Reforms.
- In 1945, after World War Two the Bretton Woods Conference these suggested reforms are the biggest change in the governance of the Fund since it was established.
Proposed reform in the Bill:
- Bill will give emerging markets more influence at the global lender and also reforms the Bill Put four emerging markets Brazil, China, India and Russia among the IMF’s top 10 shareholders.
- It will give developing markets more voting power and double the Fund’s resources.
- IMF would increase from3.8 % to 6 % with China’s vote.
- With this it will become third-largest shareholder from its previous sixth position.
- The IMF’s poorest member countries voting power and quota shares will be protected.
- Board of IMF will completely involve elected Executive Directors.
- Five largest quotas holders will end the current category of appointment of Executive Directors.
- Shares of all 188 members will increase as the Fund’s share from 238.5 billion to about 477 billion special drawing rights (SDR)
- Published on: December 21, 2015