PBOC welcomes US ratification of IMF quota and governance reforms

A pedestrian walks past the headquarters and head office of the People's Bank of China (PBOC), China's central bank, in Beijing, China, June 27,?2015.

The US Congress' approval of the quota and governance reforms of the International Monetary Fund (IMF) has been welcomed by the People's Bank of China (PBOC).

According to the statement on the central bank's official website, this approval means that the 2010 reforms, after protracted delay, are expected to take effect soon.

The measures will enhance the representativeness and voice of emerging market and developing countries (EMDCs) at the IMF, thus helps maintain the IMF's credibility, legitimacy and effectiveness.

Going forward, China will work closely with other member countries to support the IMF to continuously improve its quota and governance structure, to ensure that the IMF remains a quota-based and adequately resourced institution, said the statement.

The 2010 reforms will double the IMF's quota resources from SDR 238.5 billion to SDR 477 billion, while shifting 6 percent of quota shares to dynamic EMDCs.

China's quota will increase from 3.996 percent to 6.394 percent, making China the third-largest shareholder in the IMF from the sixth.