Bank of China executive to take up senior IMF post

A Bank of China executive will take up a senior post at the International Monetary Fund (IMF), a person with direct knowledge of the situation said on Tuesday, as China seeks more power in the Washington-based agency. Executive Vice President Zhu Min, a former World Bank economist, may first transfer to China's central bank before assuming his IMF role, the person said, declining to disclose his new titles.
Chinese magazine Caijing reported on Tuesday that Zhu will act as vice governor of the People's Bank of China before being appointed Vice President of the IMF. China and some other developing countries have been pushing for more voting power at the IMF to help build a global monetary environment conducive to their growth model. The IMF, meanwhile, needs Beijing's support as the fund embarks on an ambitious reform agenda in the middle of the global financial crisis. "China needs a more favourable set of global rules to help its economic growth and capital market reforms," said Liu Jun, analyst at Chang Jiang Securities Co.
"Zhu's international experience and background makes him a good choice for the IMF job," Liu said, adding that his departure would not have a negative impact on the Bank of China. Bank of China spokesman Wang Zhaowen declined to comment, while Zhu could not be immediately reached. The source declined to be identified because he is not authorised to speak to the media.
Zhu, who earned a master's degree from Princeton University and a doctorate in economics from Johns Hopkins University, joined the Bank of China in 1996 to help the lender conduct initial public offerings in Shanghai and Hong Kong. Zhu is author of a book.
"The Financial Crisis and its Future Impacts," which draws on his understanding of the global financial crisis that stemmed from the subprime credit woes in the United States. China, less affected by the crisis than many Western countries, has been urging the IMF to closely monitor international capital flows and promote exchange rate stability among major reserve currencies.
The IMF instead wants more capital funding from China to help fight future financial crises. China has committed to buying up to $50 billion in IMF bonds over the next year. For its part, the IMF may ask Beijing to contribute more and to make its funding level permanent in return for greater voting power.