September 1, 2006
HP-80

Treasury Under Secretary Adams Releases Statement on IMF Reform

Washington, D.C. – Treasury Under Secretary for International Affairs Timothy D. Adams released the following statement on IMF reform:

I am pleased that the Fund's Executive Board has put on the table a reform package that will take into account the rapid growth in emerging markets and the evolution of economies around the world. All agree that it is also critical to ensure an appropriate voice for the poorest countries.

However, there is much important work left to be done after Singapore and it is crucial that the Fund's membership approach this endeavor in the spirit of re-making the Fund to look like the face of today's global economy.

The IMF management and membership now need to demonstrate that the institution will move swiftly to fundamental reform in step two. Significantly higher GDP share in a new quota formula and updated, strengthened, and rigorously applied guidelines for exchange rate surveillance are necessary components if the IMF is to remain the world's leading multilateral institution for macroeconomic and financial policy.