IMF Members' Quotas and Voting Power
Quotas are a central component of the IMF’s financial resources. Each member country of the IMF is assigned a quota, based broadly on its relative position in the world economy.
Quotas are denominated in Special Drawing Rights (SDRs), the IMF’s unit of account. For instance, the largest member of the IMF is the United States, with a current quota of SDR 42.1 billion (about $59 billion), and the smallest member is Tuvalu, with a current
quota of SDR 1.8 million (about $2.5 million).
SDR: value is weighted between 4 currencies: 1) The US dollar, 2) the British pound, 3) the Japanese yen, and 4) the Euro
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The values of these currencies are added together
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NOTE: 1SDR=$1.49 (only at the moment-it changes)
Quotas play 3 key roles in the IMF
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1) Subscriptions. A member's quota subscription determines the maximum amount of financial resources the member is obliged to provide (give) to the IMF. A member must pay its subscription in full upon joining the Fund. THE HIGHER THE QUOTA, THE HIGHER ITS SUBSCRIPTION.
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2) Voting power. The quota largely determines a member's voting power in IMF decisions. Each IMF member’s votes are comprised of basic votes plus one additional vote for each SDR 100,000 of quota. The 2008 reform fixed the number of basic votes at 5.502 percent of total votes. The current number of basic votes represents close to a tripling of the number prior to the implementation of the 2008 reforms. Still, THE HIGHER THE QUOTA, THE BIGGER ITS VOTING POWER.
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3) Access to financing. The amount of financing a member can obtain from the IMF is based on its quota. THE HIGHER