On January 23rd, the Mckinnon Lectures (No.15) was successfully held online, co-hosted by the School of Finance and the the National Finance Academy of Renmin University of China, and organized by the International Monetary Institute (IMI) of Renmin University of China and the Joint Council of the International Cooperation Center. The conference invited Anoop Singh, former Director of the Asia-Pacific Department of the IMF, former Managing Director of Regulatory Affairs for Asia-Pacific at JP Morgan’s, and adjunct professor at Georgetown University, to deliver a keynote speech on “Reform of the International Monetary System.” Qi Jianming, Secretary-General of the Asian Financial Cooperation Association, Gao Haihong, Director of the Research Center for International Finance of Institute of World Economics and Politics, Chinese Academy of Social Sciences, Tu Yonghong, Deputy Director of the International Monetary Institute and Dean of the Yangtze River Economic Zone Research Institute of RUC, respectively, conducted discussions on the salon theme. The meeting was chaired by Zhang Zhixiang, Member of IMI Academic Committee, former Director General of the International Department of the People’s Bank of China, and former Executive Director for China in the International Monetary Fund.

Anoop Singh warned of an impeding global debt crisis, underscoring the urgent need for reform of international monetary system. He emphasized the acute debt challenges faced by emerging markets and low-income countries, while identifying the debt burdens of the United States and China as primary global risk factors. Firstly, the governance structure of the International Monetary Fund (IMF) needs to be reformed to better reflect the current global economic landscape. Emerging countries, particularly China and others, should have greater voice and influence within the IMF. This would enable the IMF to implement more effective and powerful measures in addressing global debt issues. Secondly, countries should enhance cooperation to collectively address debt problems. They should adopt standardized debt reporting methods to increase transparency and avoid data gaps and hidden debt issues. Meanwhile, countries should jointly establish rules and standards to ensure the accuracy and reliability of debt data. Additionally, as a key member of the G20, China should actively engage in resolving global debt problems. China can propose new initiatives and solutions to contribute wisdom and strength to addressing global debt issues. For example, China can promote the establishment of a domestic debt registration system to facilitate information sharing and collaboration among countries. Furthermore, China can strengthen cooperation with the International Monetary Fund to collectively address the global debt crisis. Finally, countries should recognize that resolving global debt issues requires long-term efforts and cooperation. They should strengthen policy coordination and communication to collectively address the debt crisis. Only through such efforts can global economic stability and sustainable development be achieved.

Qi Jianming pointed out that the development of the international monetary system had faced three major challenges: the Triffin dilemma, the trust crisis of US debt, and IMF quota adjustments. The contemporary international monetary system originated from the Bretton Woods Conference in July 1944 and has since undergone a series of reforms. A key initiative in this regard was the establishment of the Committee of Twenty (an ad hoc Committee of the Board of Governors on Reform of the International Monetary System and Related Issues) in July 1972. Focusing on the present, the Chairman of the IMF International Monetary and Financial Committee stated in December 2023 that efforts should be made to develop, by June 2025, possible approaches as a guide for further quota realignment, including through a new quota formula, under the 17th General Review of Quotas. This aligns with the Chinese proverb of “keeping pace with the times”. Reform and opening up are important issues of concern for China, India, and other developing countries. It is believed that China will actively participate in the new round of international monetary system reforms in the future, and it is also hoped that China can work together with India and other developing countries to play a greater role, jointly ensuring that IMF quota distribution is more representative and keeping the IMF truly up-to-date.

Gao Haihong discussed the new “Triffin Dilemma” and corresponding measures from five aspects. Firstly, the current “Triffin Dilemma” is closely related to the liquidity of the US dollar, and trust in the US dollar also needs to consider political factors. Secondly, currency swaps between central banks play a significant role in the global financial safety net, and China is also actively providing assistance in this regard. Thirdly, regional financial organizations provide supplementary assistance to the IMF. Fourthly, adjustments should be made to the allocation of member countries’ quotas in IMF governance reforms. Fifthly, the international monetary system framework needs to keep pace with the times and build consensus to provide more support to countries in need.

Tu Yonghong proposed three reflections on the current international monetary system. Firstly, it is imperative to pay special attention to the debt crisis in emerging markets and some underdeveloped countries, as it requires urgent resolution. Secondly, the international monetary system should be reformed towards diversification, with more voices from developing countries in global financial governance. Thirdly, addressing the imminent debt crisis requires increased transparency in data and the establishment of a better international financial statistical system. Without transparent, comprehensive and systematic data, many macroeconomic policies, particularly those aimed at controlling crises and financial risks, cannot be accurately formulated. In future reforms of the international financial governance system, it is essential to promptly establish standards for the protection and cross-border use of financial data, better adapting to the development of central bank digital currencies and emerging digital financial forms.