{{China\u2019s state owned media announcement on Monday that the communist power will inject US$43 billion to recapitalise the International Monetary Fund.<\/p>\n
This decision cemented China\u2019s image as a responsible country and conformed to national interests, experts said.}} <\/p>\n
\u201cThe announcement came against the backdrop of global economic uncertainties and mounting financial market turmoil. <\/p>\n
\u201cIt aims to narrow the IMF\u2019s funding gap and let it play a better role in safeguarding global economic and financial stability,\u201d said He Fan, assistant director of the Institute of World Economics and Politics under the Chinese Academy of Social Sciences.<\/p>\n
China\u2019s contribution was part of a pledge made by G20 finance ministers in April to increase the financial firepower of the IMF by over US$430 billion in order to shield the world economy from the European financial crisis.<\/p>\n
Analysts said China\u2019s decision to boost resources for the IMF offers China a good way to use its rich foreign exchange reserves.<\/p>\n
\u201cChina\u2019s capital commitment is not free aid. It is actually an investment and a useful foreign reserve management tool,\u201d the People\u2019s Bank of China (PBOC), the country\u2019s central bank, said on Tuesday in a statement on its website.<\/p>\n
The nation\u2019s foreign exchange reserves stood at US$3,04 trillion by the end of March, the largest in the world.<\/p>\n
\u201cIt\u2019s the IMF borrowing from China on the basis of guaranteeing safe and reasonable returns,\u201d the statement said.<\/p>\n
Ding Zhijie, an economics professor at the University of International Business and Economics, said such pledges can be regarded as a preventative measure or a credit line for the IMF, and the fund may only use a small amount of the pledged money.<\/p>\n
For instance, \u201cChina promised to buy up to US$50 billion of IMF bills when the fund expanded in 2009, but has so far only purchased US$5,7 billion worth,\u201d Ding said.<\/p>\n
As a global intergovernmental organisation, the IMF takes necessary measures to ensure the capital safety of its member countries. <\/p>\n
\u201cChina\u2019s holdings of IMF bills are safe and with normal interest payments so far,\u201d according to the PBOC statement.<\/p>\n
\u201cChina\u2019s capital increase to the IMF is line with China\u2019s interests and China\u2019s international status and international responsibility,\u201d the statement said.<\/p>\n
Experts and the PBOC called on the IMF to implement its 2010 quota and governance reform package and increase developing countries\u2019 voting power in the financial organisation.<\/p>\n
In 2010, the IMF\u2019s Board of Governors agreed to shift over 6 percent of the IMF quota to emerging or under-represented countries by October this year. <\/p>\n","protected":false},"excerpt":{"rendered":"
{{China\u2019s state owned media announcement on Monday that the communist power will inject US$43 billion to recapitalise the International Monetary Fund. This decision cemented China\u2019s image as a responsible country and conformed to national interests, experts said.}} \u201cThe announcement came against the backdrop of global economic uncertainties and mounting financial market turmoil. \u201cIt aims to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[75],"byline":[334],"hashtag":[],"class_list":["post-2577","post","type-post","status-publish","format-standard","hentry","category-news","tag-homenews","byline-igihe-reporter"],"bylines":[{"id":334,"name":"IGIHE Reporter","slug":"igihe-reporter","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"contributors":[{"id":334,"name":"IGIHE Reporter","slug":"igihe-reporter","description":"","image":{"id":0,"url":"https:\/\/secure.gravatar.com\/avatar\/?s=96&d=mm&f=y&r=g","alt":"Default avatar","title":"Default avatar","caption":"","mime_type":"image\/jpeg","sizes":[]},"user_id":null}],"featured_image":null,"_links":{"self":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2577","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/comments?post=2577"}],"version-history":[{"count":0,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/posts\/2577\/revisions"}],"wp:attachment":[{"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/media?parent=2577"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/categories?post=2577"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/tags?post=2577"},{"taxonomy":"byline","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/byline?post=2577"},{"taxonomy":"hashtag","embeddable":true,"href":"https:\/\/new.igihe.com\/english\/wp-json\/wp\/v2\/hashtag?post=2577"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}