China central bank governor calls for IMF quota reform

BOAO, Hainan, March 27 (Xinhua) -- Pan Gongsheng, governor of the People's Bank of China (PBOC), the Chinese central bank, called on Asian countries on Wednesday to jointly push for the quota reform of the International Monetary Fund (IMF) so that the international financial institution can better play its role as the center of the global financial safety net.

Pan made the remarks while attending a sub-forum of the Boao Forum for Asia Annual Conference 2024, titled "Deepening Financial Cooperation in Asia," held in Boao, south China's Hainan Province.

Asian countries should work together to promote IMF quota reform and achieve quota adjustment as soon as possible to better reflect the due positions of Asian countries in the global economy, and especially to enhance the voice and representation of emerging markets and developing countries, Pan said.

Asian countries can push for a consensus on a new quota formula as soon as possible, laying the foundation for quota adjustment. "This is to ensure that the IMF is a rule-based institution that truly practices multilateralism," he said.

On strengthening the financial safety net in Asia, Pan also called on parties in the Asian region to continue to focus on financial stability objectives and further optimize the Chiang Mai Initiative to enhance resilience to external risks, Pan stated.

Pan also urged Asian nations to push forward bilateral currency swaps.

The PBOC has signed local currency swap agreements with 29 countries and regions, with a total swap size of more than 4 trillion yuan (about 564 billion U.S. dollars), effectively promoting cross-border trade and investment, according to Pan.

The PBOC is ready to continue to deepen monetary cooperation with Asian economies to promote the facilitation of bilateral trade and investment and play its part in maintaining regional financial stability, Pan said.

Pan said that China has always attached great importance to proactively preventing and defusing financial risks, noting that China is formulating a financial stability law that seeks to establish mechanisms that define responsibilities and cost-sharing in the handling of risks.