India pitches for better BRICS coordination on IMF quota

• As per an IMF resolution, the 16th General Review of Quotas should be concluded by December 15, 2023.

• Last review in Feb 2020, kept the quotas unchanged.

About IMF quotas:

• The IMF is a quota-based institution. Quotas are the building blocks of the IMF’s financial and governance structure.

• Quotas are denominated in Special Drawing Rights (SDRs).

• SDR is an international reserve asset created by the IMF to supplement the official reserves of its member countries. SDR is not a currency.

• The IMF’s Board of Governors conducts general reviews of quotas at regular intervals (no more than five years apart). Any changes in quotas must be approved by an 85% majority of the total voting power, and a member’s own quota cannot be changed without its consent.

• Any adjustment in quota shares could result in increase in voting rights of emerging countries in line with their relative positions in the world economy.

• It could result in increase in share of emerging markets and developing countries as a whole, while protecting the voice and representation of the poorest.

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Mains Paper 2: International Relations

Prelims level: IMF quotas

Mains level: Read the newsfeed

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