The Executive Board of the International Monetary Fund (IMF) has proposed a 50% increment in quota to be allocated to member countries, including the likes of Ghana.
In line with guidance from the International Monetary and Financial Committee (IMFC), the proposal seeks to address the pressing need for strengthening the IMF’s financial underpinning, as the world grapples with an unpredictable and shock-prone economic landscape.
Managing Director of the IMF, Kristalina Georgieva, underscored the significance of this initiative. She stressed that the quota increase is vital for safeguarding global financial stability and enabling the IMF to respond effectively to the financial challenges faced by its members.
Furthermore, this proposal recognizes the urgency of recalibrating quota shares to more accurately reflect the economic realities of member countries, while ensuring that the interests of the world’s most vulnerable economies are safeguarded.
Ms Georgieva called on the Executive Board to develop approaches for quota realignment, possibly through a new quota formula, under the 17th General Review of Quotas by June 2025.
“The proposed quota increase comes at a complex time for the global economy and the IMF’s membership. In the spirit of international cooperation, I am hopeful this proposal will garner the broadest possible support from the membership, and that we will then make progress on a quota realignment under the 17th Review,” said Kristalina Georgieva.
In a world marked by increasing fragmentation and uncertainty, the proposal is seen as a strong signal of the international community’s ability to unite in support of cooperative solutions.
It is also a testament to the IMF’s pivotal role in aiding its member countries as they navigate the complex global landscape.
The proposal now awaits the verdict of the Board of Governors, with approval requiring a substantial 85% majority of the total voting power.
The Executive Board has requested that the Board of Governors vote on this proposal by December 15, 2023.
This proposal by the Executive Board of the IMF carries immense implications for the future of global financial stability and the IMF’s role as a linchpin of the international monetary system.