Press Release No. 01/01

Mr. Horst Köhler, Managing Director of the International Monetary Fund (IMF), announced today:

"The Executive Board of the International Monetary Fund has proposed to the IMF Board of Governors an increase in China's quota to SDR 6,369.2 million (about US$ 8.4 billion at today's exchange rate) from SDR 4,687.2 million (about US$ 6.2 billion). The proposal responds to a request by China for a special increase in its quota to better reflect its position in the world economy following the resumption of Chinese sovereignty over Hong Kong. The proposed quota represents about 3.0 percent of total quotas."

The adoption of the proposal to increase China's quota requires a majority of 85 percent of the total voting power and Governors are being asked to vote by February 5, 2001. China will have 30 days from the approval by the Governors to consent to, and pay, the increased quota subscription. The proposal provides that 25 percent of the quota increase, SDR 420.5 million (about US$ 550 million), be paid in SDRs or usable currencies specified by the IMF, with the remainder paid in China's own currency. The increase in China's quota would bring total IMF quotas to SDR 212.4 billion (about US$ 278.5 billion).

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