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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Chas. who wrote (67504)	10/23/2010 12:38:23 PM
From: elmatador	Respond to of 217836

10 biggest shareholders will comprise the U.S., Japan, four major European economies and Brazil, Russia, India and China. The IMF will have 24 board seats Finally the chairs were re-arranged. G-20 Agrees to ‘Biggest Reform’ of IMF, Strengthens Global Role Oct. 24 (Bloomberg) -- The Group of 20 agreed to overhaul the International Monetary Fund, increasing its role in managing the world economy and giving emerging nations more say in how the organization is run. More than 6 percent of IMF voting rights will be reallocated to countries such as China, while Europe will give up two board seats, G-20 finance ministers said yesterday after meeting in Gyeongju, South Korea. They also assigned the Washington-based fund a role in monitoring global trade imbalances and exchange rates. This is the “biggest reform” of IMF governance since the institution was created in 1945, IMF Managing Director Dominique Strauss-Kahn said. “The world is changing, there will be other reforms. But certainly today we put an end to a discussion” about the fund’s legitimacy. The changes reflect the shift in global economic power in the wake of the 2008 financial crisis as emerging markets gain heft with investors, and within the institutions that were set up after World War II to govern the world economy. At the same time, G-20 countries asked the IMF to deepen its work in monitoring exchange rate movements and the “spill- over” assessments of various national economic policies. Part of that role will involve the fund policing commitments made today to reduce current account imbalances. ‘Driving Force’ “The fund has clearly emerged as a driving force in this crisis and post-crisis situation,” French Finance Minister Christine Lagarde told journalists in Gyeongju. “It was long- expected reform that is really shifting the balance of power and making space for all economies.” After the changes take effect, the fund’s 10 biggest shareholders will comprise the U.S., Japan, four major European economies and Brazil, Russia, India and China. The IMF will have 24 board seats. The agreement ends months of negotiations that saw the U.S., Europe and some emerging nations at loggerheads over who should give up power. Officials were kept up through the night until 5 a.m. yesterday negotiating the pact and then resumed the talks through the afternoon, French officials said. ‘Historic Agreement’ “This is a historic agreement,” U.K. Chancellor of the Exchequer George Osborne said, adding that an accord wasn’t expected today. “We’ve actually pulled off major reform” and the “Europeans can say with some pride that we worked together to make this happen. For the U.K., where we’ve got enormous interest in global economic stability, this is a very, very good outcome.” Group of 20 leaders pledged last year to increase the voting power of China and others and planned to settle on details before G-20 leaders meet in Seoul in November. U.S. Treasury Secretary Timothy F. Geithner has cited this plan in his campaign for China to allow its currency, the yuan, to appreciate against the dollar. The IMF’s board may approve the package in the first week in November, and it will probably take a year for the changes to be put in place, Strauss-Kahn said. --With assistance from Sandrine Rastello in Washington and Rebecca Christie in Gyeongju, South Korea. Editors: Ken McCallum, Brett Miller To contact the reporters on this story: Mark Deen in Gyeongju, South Korea at markdeen@bloomberg.net Rebecca Christie in Gyeongju, South Korea at rchristie4@bloomberg.net; To contact the editor responsible for this story: John Fraher at jfraher@bloomberg.net