China Criticizes IMF Continues to Limit Emerging Market Input

China called on the IMF on Wednesday to stick to a commitment to give emerging markets more power at the world body after U.S. lawmakers set back historic reforms that would give developing countries a greater say.

The remarks by Chinese Foreign Ministry spokesman Hong Lei were an indirect criticism of the United States, the biggest and most powerful IMF member, where lawmakers failed on Monday to agree on key funding measures, though Hong did not mention the United States by name.

The proposed $1 trillion spending bill for the U.S. federal government did not include funding for the International Monetary Fund.

Congress must sign off on the IMF funding to complete 2010 reforms that would make China the IMF’s third-largest member and revamp the IMF board to reduce the dominance of Western Europe.

The changes would also give greater say to nations such as Brazil and India to reflect their growing economic heft.

But the changes have been held up by the lack of approval from the United States.

“The IMF quotas reform is an important decision made by the organization,” Hong said at a daily news briefing.

via Reuters

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.