Thursday, October 30, 2008

If China give money to IMF, it should get more rights

Chinese Premier Wen Jiabao said developing countries should get a bigger voice in international financial institutions and the ability to set rules, though he did not specify which institutions.

His comments come as the US hopes China will play an important role in international financial talks at a summit in Washington next month.

"The right of emerging and developing countries to know what's going on have a voice and the right to set rules should be improved," he said, according to a transcript on the Foreign Ministry's website.

Wen called for the establishment of a new international financial order because of the financial crisis, and called for the establishment of a multi-currency international monetary system, saying other currencies should be promoted.

If China doles out money as part of any kind of international rescue fund, it should get more influence in bodies such at the International Monetary Fund, said Zuo Xiaolei, chief economist with China Galaxy Securities Company.

The majority of China’s foreign currency reserves are invested in US Treasury securities, which is also lending support to the US economy.

"They think China is rich by only looking at the US$1.9 trillion foreign exchange reserves. But China also has to pay external debts and keep the stability of its own financial safety," she said.

"Let's assume, if China does give money to the IMF, of course China should ask for more rights," she said.

1 comment:

Anonymous said...

bad seed that can do nothing else but produce bad fruits.It’s always a good thing to GIVE AND HELP.........