US should support World Bank and IMF - Bank of England boss - Voice of Asia

Bank of England Governor Andrew Bailey recently urged the United States to continue supporting the two major global economic institutions, the International Monetary Fund (IMF) and the World Bank. Bailey stated that he is closely monitoring whether the Trump administration will change its stance on supporting these two institutions, underscoring their vital role in global stability.

Sources in Washington revealed that a White House executive order requiring a review of the United Nations and other international organizations has also affected the IMF and the World Bank. This review has sparked concerns in the global financial community about the possibility of the United States withdrawing from these institutions, with even radical proposals for reforming the global financial system being put forward in Washington D.C. as a result.

Bailey emphasized that avoiding the fragmentation of the world economy is crucial, highlighting the importance of international cooperation. "This largely depends on our support for and participation in multilateral institutions, such as the International Monetary Fund and the World Bank, which are essential to the functioning of the global economy," he stated, advocating for continued engagement.

It is understood that Trump's "Project 2025," a blueprint written by key White House personnel, suggests withdrawing from these two institutions and terminating financial contributions. The plan argues that these institutions' "economic theories and policies are contrary to America's free market and limited government principles." According to the White House executive order, all international intergovernmental organizations of which the United States is a member will be reviewed to determine whether they are "detrimental to U.S. interests" and "whether they can be reformed," potentially leading to significant changes in US foreign policy.

Sources within the Group of Twenty (G20) stated that during Trump's first term, his team suggested abolishing the International Monetary Fund at the 2018 Buenos Aires summit. The IMF stated yesterday that it has a "long history of cooperation" with successive U.S. administrations. The United States is reportedly the largest shareholder in the IMF and the World Bank, both of which were created 80 years ago at the Bretton Woods Conference, responsible respectively for providing last-resort loans to countries facing financial difficulties and investigating economic issues, as well as providing funding and low-interest loans to developing countries to promote poverty reduction and development, highlighting their ongoing significance in global economic governance.