(Yicai) Oct. 16 -- The governor of the People’s Bank of China has called on the International Monetary Fund to strengthen the voice of emerging markets in its quota reform and try to remove arbitrary restrictions on trade, investment, and supply chains.

China always believes that the IMF’s quota reform is supposed to achieve quota increase and realignment in order to show the quota-based nature of the IMF, reflect members' relative positions in the global economy, and strengthen the voice and representation of emerging markets and developing countries, Pan Gongsheng said at the 48th meeting of the International Monetary and Financial Committee held in Marrakech, Morocco from Oct. 13 to 14.

Quotas are a key part of the IMF’s governance structure and determine a member country's financial commitment to the New York-based organization as well as its influence in IMF decision-making. Quota reform is a process aimed at adjusting members’ voting power and financial contributions to reflect changes in the global economy.

The 15th General Review of Quotas wrapped up in 2020 with no increase in quotas and provided guidance for the next review, which is ongoing and expected to be completed by the middle of this December, according to the IMF’s website.

Pan also said that as a key multilateral financial institution, the IMF should continue to call for the removal of arbitrary restrictions on trade, investment, and supply chains as soon as possible, prevent global economic and financial fragmentation, and promote more just and equitable global governance.

China has implemented a sound monetary policy in a targeted and forceful manner and enhanced counter-cyclical adjustments, effectively addressing risks and challenges at home and abroad and reinforcing the momentum of the economic recovery, added Pan, who is also the director of the State Administration of Foreign Exchange.

The PBOC will continue its efforts, ride the momentum to intensify macro adjustments, and give full play to the role of monetary policy instruments in adjusting both the aggregate and the structure, Pan said. The bank will also focus on expanding domestic demand, boosting confidence, and expediting a virtuous circle of the economy so as to provide stronger support for the real economy, he added.

According to the IMFC meeting, the global economy has been resilient, but the recovery has been slow and uneven, with policy prioritizing lower inflation, financial stability, and fiscal sustainability, while protecting the most vulnerable and boosting inclusive and sustainable long-term growth.

Meeting participants reaffirmed their commitment to a strong, quota-based, and adequately resourced IMF at the center of the global financial safety net and committed to concluding the 16th review of quotas in a timely manner. 

Editors: Dou Shicong, Martin Kadiev