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Tuesday, November 20, 2012

''Global reserve currency '‘not by fiat’'

From Hindu Business Line

''There is a need to bring more countries into the global economic decision making, according to the Reserve Bank of India Governor D. Subbarao.

“The global economic and financial crisis of 2008 exposed critical weaknesses in the structure of the international financial architecture as well as in its governance,” he added.

Global institutions can only be legitimate and credible if their vote share and governance structure reflect members’ share in the world economy, Subbarao said. Subbarao called for fast-tracking the agreement for the International Monetary Fund quota and governance reforms. “We should adhere to the timeline for completing the IMF quota reforms by January 2013, so that it serves as the basis for the 15th general review of quotas to be completed no later than January 2014,” he added.'' 

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