The Black Vault

November 6, 2010 15:34:00

The International Monetary Fund's (IMF) executive board has decided to boost the voting power of big emerging economies.

The decision makes China the third leading voice of the global lender.

IMF's managing director Dominique Strauss-Kahn says it is the most fundamental overhaul in the fund's 65-year history.

He says it is the biggest ever shift of influence in favour of emerging markets and developing countries to recognise their growing role in the global economy.

Under the deal, 6 per cent of IMF voting shares will be transferred to what are described as "dynamic" emerging markets, like China, India, Brazil and Russia, from industrial economies.

The move puts China ahead of European powers Germany, France and Britain, with only the US and Japan in front.

The announcement comes ahead of next week's G20 summit in Seoul, which is expected to focus on currency tensions between Beijing and Washington.