In a press release issued on January 4, IMF Managing Director Horst Köhler announced that the IMF had proposed a quota increase for China.
“The Executive Board of the IMF has proposed to the IMF Board of Governors an increase in China’s quota to SDR 6,369.2 million (about $ 8.4 billion at today’s exchange rate) from SDR 4,687.2 million (about $6.2 billion). The proposal responds to a request by China for a special increase in its quota to better reflect its position in the world economy following the resumption of Chinese sovereignty over Hong Kong SAR. The proposed quota represents about 3.0 percent of total quotas,” Köhler said.
The adoption of the proposal to increase China’s quota requires a majority of 85 percent of the total voting power and Governors are being asked to vote by February 5,2001. China will have 30 days from the approval by the Governors to consent to, and pay, the increased quota subscription. The proposal provides that 25 percent of the quota increase, SDR 420.5 million (about $550 million), be paid in SDRs or usable currencies specified by the IMF, with the remainder paid in China’s own currency. The increase in China’s quota would bring total IMF quotas to SDR 212.4 billion (about $278.5 billion).