Brazil becomes tenth largest IMF's shareholder

Brazil has become the tenth largest shareholder of the International Monetary Fund (IMF), as the Central Bank (BC) reported today (Feb. 22). The country moved up four positions after paying its increased quota last week.

Quotas are a central component of  IMF's financial resources. A quota is established for each member according to its position in the world economy. The stronger the country, the higher its quota and its voting power in the Fund.

According to the BC, the quota increases agreed under the IMF's 14th General Quotas Review. A member must pay its subscription in full upon joining the Fund, to be concluded in the next few weeks. Brazil's shares in the Fund's total quotas will increase from 1.78% to 2.32%.

The BC reported that the 14th General Quotas Review was a result of detailed negotiations during the post-crisis period in 2008 and culminated in an agreement in 2010, aiming to double IMF's resources and strengthen the relative share of emerging markets and development countries.

BRIC countries (Brazil, Russia, India and China) are among the countries to increase their quotas. They will be among the top ten shareholders of the Fund and, together, will account for 14.2% of IMF quotas (or 13.5% of voting power).

The net result of the rise in quotas does not affect the level of Brazil's international reserves, reported the BC.

Translated by Amarílis Anchieta