The Brazilian government is calling for a redistribution of IMF funding quotas to better represent the interests of developing countries. Brazil is pushing for this change during the upcoming IMF meeting, citing the launch of financial institutions like the New Development Bank by the BRICS Group as evidence of the need for economic independence. Brazil President Luiz Inacio Lula da Silva is looking to leverage the G20 Presidency to push for reform of the IMF and World Bank.Kristalina Georgieva, IMF’s Managing Director, agrees with Brazil that the Washington-based lenders need to make certain adjustments to align with the changes taking place in the world economy. She believes that there would be devastating consequences if the institution is unable to restore confidence in these developing nations.Currently, the United States holds the largest IMF quota (17%), while China, the world’s second-largest economy, holds only 6%. Brazil holds only a little above 2%. The U.S. is not in support of shifting voting weight to countries unless they are “respecting the roles and norms of the IMF and working to strengthen the international monetary system.”Bitcoin may be an asset to break the stalemate, redistribute financial equity, and bring about better inclusion for emerging economies. The BRICS block is exploring this asset as an option to displace the Dollar hegemony and in the long term, it might form the basis to back the current demands from Brazil.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | South America |
| Countries | 🇧🇷 🇺🇸 🇮🇳 🇨🇳 🇿🇦 |
| Sentiment | neutral |
| Relevance Score | 8 |
| People | Luiz Inacio Lula da Silva, Jay Shambaugh, Fernando Haddad, Kristalina Georgieva, Tatiana Rosito |
| Companies | SEC, International Monetary Fund (IMF), Asian Infrastructure Investment Bank, India, FCA., China, G20 Presidency, Russia, and South Africa) Group, New Development Bank, CySEC, BRICS (Brazil, FINRA |
| Currencies | US Dollar, Ethereum, Impossible Finance, Bitcoin, Brazilian Real |
| Securities | None |
