People's Bank of China Governor Pan calls for faster IMF quota reform and stronger policy coordination at IMFC meeting

The People's Bank of China reported that Governor Pan Gongsheng spoke at the International Monetary Fund’s 51st International Monetary and Financial Committee meeting in Washington, calling for accelerated IMF quota reform and closer macroeconomic policy coordination as trade tensions drive uncertainty and financial market volatility. The IMFC assessed the world economy as being at a critical turning point, with rising trade tensions increasing uncertainty and market swings and creating risks to growth and financial stability. It reiterated support for a strong, quota-based, adequately resourced IMF as the core of the global financial safety net, and urged members to complete domestic approval processes to implement the quota increase agreed under the sixteenth general review, while ensuring quota share realignments better reflect members’ relative weight in the global economy and protect the voice of the poorest countries. Pan argued that recent US tariff measures undermine rules-based multilateral governance and the global economic order, trigger sharp financial market volatility, and pose challenges for emerging market and developing economies; he also urged support for the multilateral trading system and said China is willing to deepen cooperation with the IMF. Pan called on members to complete internal procedures to bring the sixteenth review quota increase into effect and to accelerate preparations for the seventeenth general review, including discussion of a new quota formula aimed at achieving meaningful quota share adjustments that increase emerging market and developing economy representation.