Scott Bessent Urges IMF to Combat Non-Market Policies

U.S. Treasury Secretary Scott Bessent urged the International Monetary Fund (IMF) to increase its scrutiny of exchange rates and non-market policies that drive global imbalances. In a written statement delivered during the IMF-World Bank Annual Meetings in Bangkok, Bessent warned that the IMF risks being sidelined if it fails to address distortionary policies that skew competition and harm employment.

Bessent specifically targeted the World Bank Group, characterizing the planned phase-out of sovereign lending to China and Poland as an important milestone. He argued that the bank must ensure countries that meet graduation criteria stop receiving loans. Additionally, he called for the World Bank to retire its prohibition on financing upstream oil and gas projects.

Regarding the IMF's internal structure, Bessent advocated for a new quota formula that reflects the current relative positions of members in the world economy. The U.S. government is currently working to secure congressional approval for the 16th General Review of Quotas to align the institution with these economic shifts.