US Treasury Presses Congress on IMF Funding
Treasury Under Secretary Lael Brainard announced in the FY2014 budget that it seeks legislation to implement the IMF quota and governance reforms agreed to in 2010. This legislation is said to reduce United States participation in the New Arrangements to Borrow by approximately $63 billion and increase the size of the U.S. quota by an equal amount. It would also authorize the U.S. to accept an amendment to the International Monetary Fund (IMF) Articles of Agreement that will facilitate changes in the composition of the IMF Executive Board while preserving the U.S. seat on the Board. As noted in the Administration’s request, the legislation will be submitted separately to Congress. This legislation is also said to be essential in order to preserve U.S. leadership and veto position in the IMF and to maintain a well-resourced and effective IMF.
The Monetary Policy and Trade Subcommittee Hearing on “Evaluating U.S. Contributions to the International Monetary Fund” was held on Tuesday, April 24, 2013 and chaired by Representative Campbell and Members of the Sub-Committee. The hearing examined the U.S. role in the IMF and the Obama Administration’s request that Congress approve a much larger U.S. quota contribution to the IMF.
Testifying before the panel, Lael Brainard, Treasury’s undersecretary for international affairs defended the safety of U.S.contributions to the Washington-based lender. As the only witness, Lael Brainard pledged to push the IMF to toughen its analysis of member countries’ exchange rates.
“The IMF is now providing much greater in-depth coverage of exchange rates, as well as related analysis on reserves, current-account imbalances and capital measures,” she said in prepared remarks to a House Financial Services subcommittee. “We will continue to urge the IMF to actively exercise its oversight role in this area.”
To see the Justification for Appropriations FY 2014 Budget Rest quest, click here
To see the Memorandum on the subject of the House of Representatives’ April 24, 2013, Monetary Policy and Trade Subcommittee Hearing on “Evaluating U.S. Contributions to the International Monetary Fund”, click here
To view an article by Bloomberg with further details, click here