On November 5, the Managing Director of the International Monetary Fund (IMF) announced that the IMF Executive Board approved the Far-Reaching Governance Reform Plan. Once implemented, China’s voting power will reach 6.07%. It will surpass Germany, France, and Britain, being behind only the U.S. and Japan. China’s current voting share is 3.65%. The planned reform will shift 6% of the overall shares to emerging markets. Europe will also give two seats on the Executive Board to emerging market countries to increase the representation of those countries. China suggested that this reform just reflects the reality of the world economy. The “historic agreement” was reached in October, during the G20 conference of treasury ministers and central bank governors.
Source: Xinhua, November 6, 2010