BEIJING - the United States should reduce its dominant share of vote in Fund International Monetary Advisor to the Bank of China said on Tuesday, helps give emerging economies more its word to say in deciding who will be the head of the IMF.
Bin Xia, who sits on the Central Bank's monetary policy Committee, told Reuters that the reform of the IMF could not make significant progress, unless the United States are ready to renounce its dominant share of the vote in favour of developing countries.
"It is not a question of who will be the candidate for the Director General of the IMF." The problem is that the vote of the United States is too big, "he says.
In China, it is one of the dominant voices that influence the position of the Government on issues relating to MFIS.
French Finance Minister Christine Lagarde has emerged as a favorite to succeed the imprisoned Fund Dominique Strauss-Kahn, Director General, but the developing economies, with growing global influence, maintain pressure on Europe and the United States to prevent a slider deal on the appointment.
"The voice of emerging market economies should be heard, but emerging markets should realize that the reform of the global monetary systems is a long process," said Xia.
The shares with voting rights reflect the relative size of the economies of member countries.
In November, the IMF has agreed to increase the power to vote on the big emerging economies, enabling China propel the Germany, the France and Great Britain in the classification of power of the Fund, with its share of quota, passing to 6.19% of 3.65%.
Under the latest adjustments, the United States remain the most powerful member of the IMF with 17.67% of the overall quota, effectively giving it veto to the Fund.
Xia said he hoped a candidate of China could compete for the IMF job, but added that it is unrealistic to expect China to play a major role in the IMF soon policy decisions.
Indeed, China is likely to exert his growing influence in the IMF, said a source in it.
China is the second largest economy in the world and our influence is growing. If we should not make choices at random and any decision must be taken cautiously and responsibly, the source, who declined to be named because he was not authorized to speak on the subject.
"Of course, the IMF should better reflect the voices of emerging countries", he added. "But it takes time and does not mean that they will necessarily be select a head emerging from this time.".
ITS MONETARY POLICY TO CONTINUE
In the interview, blamé Xia yet once policy monetary ultra-loose in the United States for pushing them to rising global commodity prices, which he said inflationary powered turn in emerging countries.
In regard to national issues, Xia said that the Government is that less concerned about slowing economic growth because it focuses on structural adjustment and is likely to maintain a tighter policy to fight inflation.
"We will continue to implement prudent monetary policy." "Prudent means policy will be relatively tight,", he said.
"It is impossible for China to support the growth in double digits as in the past," said Xia.
Expanded China plants are at their slowest pace in 10 months then the pressure on prices eased, index of managers purchase showed Monday, adding to evidence that the economy is moderating as a more stringent policy begins to bite.[ID: nL3E7GN06N]
The Bank Central, anxious to put a lid on inflation, has unveiled a series of tightening measures over the past months, including increases in reserve requirements of banks and interest rates.
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