"We are grateful to the Chinese authorities for signaling their intention to invest in IMF notes and thereby, helping the IMF membership weather this global economic and financial crisis," IMF Managing Director Dominique Strauss-Kahn said in a statement.

China's State Administration of Foreign Exchange said that  China is willing to purchase the bonds issued by the IMF, since both the yield and risks are reasonable.

"With this announcement, the Chinese authorities have signaled strong support for the international economic and financial system," Strauss-Kahn said. "This decision will be beneficial to all."

IMF members' investment will boost the Fund's capacity to help member countries, particularly developing and emerging market nations, cope with the crisis and thus benefit all members by facilitating an early recovery of the global economy.

The new notes, meanwhile, will offer members a safe investment instrument with reasonable return, according to the IMF.

"IMF staff will present the necessary documentation to the Fund's Executive Board to allow the issuance of notes as early as possible," Strauss-Kahn said.

The 185-nation IMF is currently struggling to provide needy countries with financing for them to survive the global financial and economic crisis.

The IMF is due to  issue its very first bonds, and major developing economies such as Brazil, Russia, India and China -- known collectively as the BRIC countries -- are seen as potential buyers The IMF said last week that Russia intended to buy up to US$10 billion in the multilateral institution's bonds.

China has the largest  forex reserves  in the world, which is currently  about US$1.9 trillion.

Investing  in a substantial amount of  bonds could  expand  China's clout at the IMF, according to observers.