How To Build A More Equitable And Inclusive Global Financial Safety Net?

The frequent breakouts of international financial crises require the establishment of a global financial safety net. The current global financial safety net includes the IMF, regional financing arrangements, bilateral swap agreements, and foreign exchange reserves of various countries. After the burst of the global financial crisis and COVID-19 pandemic, the current safety net faces the threat of fragmentation. To meet the numerous challenges ahead, we propose to build a more equitable and inclusive global financial safety net designated to provide financial assistance for countries in need. Our policy suggestions include: (1) boosting the reform ofthe IMF’s funding sources and quotas, and consolidating the IMF’s pivot position in the global financial safety net. (2) broadening the coverage and enhancing the role ofregional financial arrangements. (3) using the IMF as a platform to strengthen collaboration between different levels. (4) preventing new risks generated by new (sovereign) digital currencies.