September 18, 2006, 08:29
Bigger say for China not pressure tactic: IMF
Source: China Daily and
SINGAPORE: A plan by the International Monetary Fund (IMF) to boost China's voting rights is not aimed at putting more pressure on Beijing to make its exchange rate flexible or undertake other policy changes, IMF chief Rodrigo de Rato said yesterday.
The 184-member institution plans to adjust its existing structure by immediately boosting the quotas of China, South Korea, Turkey and Mexico and later rework the voting rights of all member nations within two years.
While most countries back the plan, ensuring its passage today, the Group of Seven industrialized countries that dominate the IMF have at the same time been urging China to ease its controls on the currency exchange rate.
Welcoming the IMF changes, Zhou Xiaochuan, governor of the People's Bank of China, reiterated that China would reform its foreign exchange regime in a "gradual, effective, and controllable" way.
Zhou said that China is a big country and has to consider many aspects in its policymaking.
He downplayed the role of the yuan's exchange rate in resolving global trade imbalances.
"Structural policy plays a much larger role compared with the exchange rate," he said.
De Rato said the move to boost China's voting share was just a recognition of its economic strength and was not linked to any reciprocal action.
"The international community recognizes that China has increased its role in the world economy," de Rato told reporters. "I don't think ... a bigger role in the institution (IMF) makes you subject to more pressures."
Being a member of the IMF, China is already under its surveillance and the fund regularly communicates its view on the challenges confronting the Chinese economy just as it does with all other member countries, he said.
De Rato, however, acknowledged that more power often brings more responsibility.
A bigger voice at IMF "would allow you to express your views but, of course, you will listen to the views of others," he said. "That happens to the first share holder and the last shareholder."
The plan to overhaul the 61-year-old IMF, whose balance of power still largely reflects the economic landscape at the end of World War II, was given the green light by the IMF's International Monetary and Financial Committee.
Under the proposals, China would see its share of total IMF voting rights raised to 3.65 per cent from 2.94 per cent now while South Korea's share would increase to 1.33 per cent from 0.76. Mexico would go to 1.43 per cent from 1.20, with Turkey's participation climbing to 0.55 per cent from 0.45.
The plan now goes to the full 184-strong membership of the Fund for final approval, with an announcement of the result of the vote expected by tomorrow.
On Saturday, Hu Xiaolian, deputy governor of the People's Bank of China, called for greater say for developing countries' voice in the IMF.
"Developing countries not only account for a majority of the Fund's membership but also are main participants in its programme," said Hu at the 76th G24 Ministers Meeting.
She noted that the IMF's quota reform is at a critical juncture and developed countries should adopt a pragmatic and flexible approach to enhance developing countries' voices.
"We call for a large increase in basic votes and the establishment of a stable mechanism whereby basic votes account for an appropriate percentage of the quota," Hu said.
Asian nations, backed by Japan, as well as developing countries have long been pushing for a greater say at the institution, which during its six-decade life so far has been dominated by the United States, Europe and Japan.
The four countries to benefit from a boost in voting stature are said by the IMF to be the only members under-represented on all four of its criteria that determine a nation's voting rights.
Those criteria are the member's gross domestic product (GDP), its openness to trade, the "variability" of its economy, in other words how volatile its growth is, and the amount of its reserves.
周小川不认为人民币增值能缩小中国对美贸易盈余
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新闻：新加坡 | 2006-09-18 |
中国人民银行行长周小川并不认为，人民币增值能缩小中国对美国的贸易盈余。他相信更有效的方法，是刺激中国境内的需求，而美国方面也可以通过增加家庭储蓄、减少财政赤字来降低整体需求。
重申汇率改革决心
不过他还是重申了中国对人民币汇率改革的决心，只是这将会采取渐进方式进行。
七大工业国(G7)的财长前天在新加坡结束会议后发表公报，再次呼吁中国让人民币汇率制度更加灵活，并提到中国的储蓄率有偏高的现象。
针对公报内容，周小川表示，中国并不是七国的成员，因此没有参与会议，但是他个人受邀出席了午餐会议，然而并没有听到有任何关于人民币汇率的提问，“我不知道他们是在什么情况下得出什么结论和公报的。”
他昨天在会见媒体时说，一些经常账目的调整，例如汇率、工资、原料价格、能源价格等的调整，都会在某个程度上对贸易收支有所影响，“但是如果有一个数学模式，你会发现汇率所扮演的角色很小。我们相信更重要的是政策的调整，让内需增加、储蓄降低，这样的效果会胜过价格的调整。”美应降低整体需求
他补充，美国方面也应该尝试增加家庭储蓄、降低财政赤字来降低整体的需求，来减少对中国的贸易赤字。
在储蓄率的课题上，周小川指出，亚洲国家在金融危机发生之前，都是净借贷国，它们在亚洲金融风暴的时候受到很多冲击，经历许多苦难，大家为了防止下一次的危机，便采取了更严谨的宏观政策，储备也因此跟着增加了。
所以他认为，国际上讨论这个问题的时候，不能只是一面的说亚洲国家的储备太多了，而是应该看到另一方面——为什么亚洲国家对自己的未来有比较多的担心？这会不会跟对冲基金的流动有关？基于此，他认为应该加强对对冲基金的管制。
周小川是在新加坡出席国际货币基金组织与世界银行集团的常年大会。国际货币基金将在来临的年会上，投票表决该组织的改革计划，赋予发展中国家更大的说话权。在改革计划下，中国、韩国、墨西哥和土耳其的投票权将会调高。
周小川对这个调整表示欢迎。
他说：“国际货币基金有这么长时间的历史，世界经济力量的平衡与分布跟现在很不一样，所以需要更重视发展中的国家，特别是那些国内生产总值增长比较快的。”
IMFC backs call for greater voice for developing nations
By May Wong, Channel NewsAsia | Posted: 17 September 2006 1932 hrs
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Rodrigo de Rato |
IMF Logo |
British Chancellor of the Exchequer Gordon Brown (R) and IMF Managing Director Rodrigo Rato (2nd-R) |
SINGAPORE : The International Monetary and Financial Committee (IMFC) has thrown its support behind reforms to give four growing economies more voice in the IMF.
The four nations are China, Turkey, South Korea and Mexico.
According to a statement by the IMFC, the reforms should be implemented no later than 2008.
Talks to give developing economies more say in the IMF have been productive, according to the IMFC, and there has been a broad consensus on many issues.
These include plans to increase the voting power and influence of developing nations based on their economic positions in the world.
Mr Rodrigo de Rato, Managing Director of IMF, said: "Many ministers have expressed views about what should be the components of the new formula regarding GDP, how to measure regarding openness, how to measure openness, the new role of financial issues and the issues of open economies ... all that will be part of the discussions that we'll start, pending on the vote tomorrow, in the next few weeks and certainly we'll try to reach a maximum consensus."
The consensus for now is that it is important to allow the low-income nations to participate more actively in the IMF.
Reports quoting the Argentinian Economy Minister as saying the IMF has already received 85 percent of votes in support of its reform plans, even though members have up to Monday to vote.
Mr de Rato said he was very encouraged by the feedback received on the package of reforms on quotas and governance so far.
He said he understood that some countries have reservations about giving certain countries more say in the IMF, but overall, there is a broad consensus to move ahead with the reforms to sustain global growth.
Singapore is one country that has come out to express its support for the IMF reforms.
Mr Tharman Shanmugaratnam, Singapore's Second Finance Minister, said: "We are very keen to see it go through. And more importantly, we are very keen to make sure that stage two is put into place on the strict deadline that has been imposed.
"It is a very important and fundamental change for the IMF. It is in the interests of Asia, it is in the interests of East Asia and we in Singapore are keen to take up an increased responsibility as part of that process."
Mr Gordon Brown, British Finance Minister and Chairman of the IMFC Meeting, also hit back at critics who accused the IMF of being useless.
"Reforms are in place. The IMF is changing and looking back in the past 60 years, the IMF has started a process of change and will continue for the next few years," he said.
The IMF's 184 members will vote on the reform package on Monday and results will be known shortly thereafter. - CNA/de
