Fri, 07 Feb 2025

Fri, 07 Feb 2025 US should support World Bank and IMF - Bank of England boss

Andrew Bailey says he is "following closely" whether Trump will change US support for the institutions.

* The Governor of the Bank of England, Andrew Bailey, has expressed concern that US support for key global economic institutions could be withdrawn.
* Bailey said it's "very important" for the world economy not to fragment and that continued US support is crucial for multilateral institutions like the IMF and World Bank.
* The two institutions are caught up in a White House review of international organizations, which may lead to recommendations for withdrawal from both.
* The review was prompted by an executive order signed by President Trump, which aims to identify organizations "contrary to the interests of the US".
* Sources suggest that the Trump administration is considering radical changes to the global financial system, including withdrawing from the IMF and World Bank.
* The two institutions are specialized agencies of the UN and provide vital support for developing countries and last-resort lending for nations in financial trouble.
* The US is the largest shareholder in both organizations, which were created 80 years ago as part of the post-war Bretton Woods Conference.
* There's growing concern among finance ministries and central banks around the world about US disengagement from the institutions.
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