People's Bank of China urges faster IMF quota increases and governance reforms at the 53rd IMFC meeting

The People's Bank of China published a readout of Governor Pan Gongsheng’s participation in the International Monetary Fund’s 53rd International Monetary and Financial Committee meeting in Washington, DC, outlining the committee’s conclusions and China’s priorities for IMF quota and governance reform and economic surveillance. The IMFC assessed the global economy as undergoing deep structural change and facing multiple challenges, and called for timely, flexible and credible policies, stronger macro policy coordination and deeper international cooperation. It approved the Diliya Quota and Governance Reform Guiding Principles, reiterated support for a strong, quota-based and adequately resourced IMF as the core of the global financial safety net, and urged members to complete domestic approvals for the quota increase under the Sixteenth General Review of Quotas while advancing discussions on quota and governance reform under the Seventeenth review. Pan argued that accelerating quota reform is critical to the IMF’s legitimacy and urged early effectiveness of the Sixteenth review quota increase and “meaningful” quota share adjustments under the Seventeenth review, alongside strengthened IMF surveillance focused on trade policy uncertainty, supply shocks and monitoring fiscal risks and spillovers from major advanced economies. Next steps set out in the readout include completing national approval processes for the Sixteenth review quota increase and continuing quota and governance reform discussions under the Seventeenth review in line with the agreed guiding principles.