BRICS finance ministers band together in call to reform the IMF
The post BRICS finance ministers band together in call to reform the IMF appeared on BitcoinEthereumNews.com. Ministers of finance from the BRICS group of developing nations called for an IMF overhaul that will redistribute voting rights and end a tradition of putting a European at the fund’s helm. The unified proposal, which is a first for the growing organization that aspires to represent the Global South, will be discussed at an IMF meeting later this year that will review the current quota system. BRICS finance ministers propose changes to the IMF The finance ministers of the countries forming the BRICS bloc are calling for reforming the International Monetary Fund (IMF) in a joint statement presenting their shared stance on the matter for the first time, as reported by Reuters. Introducing a new formula for distributing voting rights and ending an informal rule to appoint European management of the fund are part of the proposal, approved at a meeting preceding the BRICS Leaders Summit in Brazil on Sunday. The ministers convened in Rio de Janeiro on Saturday and agreed to support the unified position for the upcoming IMF meeting in December devoted to reviewing changes to the fund’s quota system that also determines contributions. Insisting that the new distribution mechanism should increase quotas for developing countries, the government officials from BRICS stated: “Quota realignment should reflect members’ relative positions in the global economy, while protecting the quota shares of the poorest members.” The revised formula must be weighted by economic output and purchasing power, while taking into account the relative value of currencies, the finance ministers emphasized. That should better represent low-income countries, according to a Brazilian official, quoted in the report. BRICS influence grows with membership BRICS, which was founded by Brazil, Russia, India, and China, held its first ministerial meeting in 2006 and its first summit in 2009, before South Africa joined the group in…
The post BRICS finance ministers band together in call to reform the IMF appeared on BitcoinEthereumNews.com.
Ministers of finance from the BRICS group of developing nations called for an IMF overhaul that will redistribute voting rights and end a tradition of putting a European at the fund’s helm. The unified proposal, which is a first for the growing organization that aspires to represent the Global South, will be discussed at an IMF meeting later this year that will review the current quota system. BRICS finance ministers propose changes to the IMF The finance ministers of the countries forming the BRICS bloc are calling for reforming the International Monetary Fund (IMF) in a joint statement presenting their shared stance on the matter for the first time, as reported by Reuters. Introducing a new formula for distributing voting rights and ending an informal rule to appoint European management of the fund are part of the proposal, approved at a meeting preceding the BRICS Leaders Summit in Brazil on Sunday. The ministers convened in Rio de Janeiro on Saturday and agreed to support the unified position for the upcoming IMF meeting in December devoted to reviewing changes to the fund’s quota system that also determines contributions. Insisting that the new distribution mechanism should increase quotas for developing countries, the government officials from BRICS stated: “Quota realignment should reflect members’ relative positions in the global economy, while protecting the quota shares of the poorest members.” The revised formula must be weighted by economic output and purchasing power, while taking into account the relative value of currencies, the finance ministers emphasized. That should better represent low-income countries, according to a Brazilian official, quoted in the report. BRICS influence grows with membership BRICS, which was founded by Brazil, Russia, India, and China, held its first ministerial meeting in 2006 and its first summit in 2009, before South Africa joined the group in…
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