• 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.
Mains Paper 2: International Relations
Prelims level: IMF quotas
Mains level: Read the newsfeed