Japan may no longer be the International Monetary Fund's second-largest shareholder after maintaining the position for about three decades when the multilateral lender completes its quota reform by the end of this year, officials and documents suggested recently.
Using the current formula, based on economic power, Japan will most likely be overtaken by China and Germany. On the back of Japan's tepid economic growth and the yen's depreciation against the U.S. dollar and other major currencies, the officials said that the country is set to be ranked fourth.
The Japanese government has backed the idea of increasing the IMF's capital resources in closed-door negotiations, but insists on keeping the fund's current quota ratio, according to the officials, who spoke on condition of anonymity.