U.S. Treasury Calls for Reform in IMF's SDR Allocation
U.S. Treasury Secretary Scott Bessent urged that the IMF's Special Drawing Rights allocation serve U.S. interests and not benefit large, financially stable countries. He also emphasized that China should no longer be considered a developing country by international financial institutions like the IMF and World Bank.
- Country:
- United States
During a pivotal discussion on Wednesday, U.S. Treasury Secretary Scott Bessent emphasized that the International Monetary Fund's Special Drawing Rights (SDR) system should be more aligned with U.S. interests rather than assisting large, financially robust nations.
Addressing the U.S. House of Representatives Financial Services Committee, Bessent highlighted the necessity for reform, suggesting that the SDR allocation currently misaligns with its intended purpose and benefits those who might not require it.
Moreover, Bessent argued that China should shed its developing country status in international financial institutions, including the IMF and World Bank, an upgrade acknowledging its economic growth and global influence.
(With inputs from agencies.)
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