Internatioal institutions

Internatioal institutions

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  UNIT - IV
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  International Monetary FundCoat of arms: Abbreviation :IMF Formation :27 December 1945; 74 years ago Type :International financial institution Headquarters :Washington., D.C. U.S. Region :Worldwide Membership :189 countries Official language :English Managing Director :Kristalina Georgieva Chief Economist :Gita Gopinath Main organ :Board of Governors Parent organization :United Nations Staff :2,400
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  International Monetary Fund •Promote international monetary co-operation, facilitate international trade, foster sustainable economic growth, make resources available to members experiencing balance of payments difficulties
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  International Monetary Fund •Purposes and Objectives According to Article of the Fund, The main purpose of Fund are; 1. To promote international monetary co-operation through a permanent institution. 2. To Facilitate the expansion and balanced growth of International trade, and contribute there by to the promotion and maintenance of high level of employment of the members countries. 3. To promote exchange stability and to avoid competitive exchange depreciation. 4. To provide for multilateral convertibility of currencies and to remove all exchange controls and restrictions. 5. To give confidence to members by making the fund’s resource available to them adequate safeguards and this fund helps to members for to correct their balance of payments deficits. 6. In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balance of payments of members.
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  Functions of InternationalMonetary Fund I. It serve as a short term credit Institution. II. The fund provides a mechanism for improving short-term balance of payments position. III. The fund provides machinery for International consultations. IV. It provides a reservoir of the currencies of the members countries and enables members to borrow one another’s currency. V. It promote orderly adjustments of exchange rate to promote exchange stability.
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  WORLD BANK Motto :Workingfor a World Free of Poverty Formation :July 1944; 77 years ago Type :Monetary International Financial Organization Legal status :Treaty Headquarters :1818 H Street NW, Washington, D.C., U.S. Membership :189 countries (IBRD) :173 countries (IDA) Key people :David Malpass(President) :Anshula Kant(MD and Chief Financial Officer) :Penny Goldber (Chief Economist) Parent organization : World Bank Group
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  WORLD BANK • Missionof World Bank; 1.To end extreme poverty. By reducing the share of the global population that lives in extreme poverty to 3% percent by 2030 2.To promote shared prosperity; By increasing the income of the poorest 40%percent of people in every country.
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  Objectives of WorldBank (or) IBRD 1. To help in the reconstruction and development of member countries by facilitating the investment of capital for the productive purpose. 2. To encourage the development of productive resources in developing countries by supplying them investment capital. 3. To promote private foreign investments through gurantees. 4. To promote long-term balanced growth of International trade and maintenance of equilibrium in the balance of payments of member countries by encouraging long- term international investments. 5. To bring about an easy transition from a war economy to a peace-time economy.
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  Functions of WorldBank (or) IBRD 1. Bank can grant loans to member countries up to 20% of paid up capital. 2. The quantum of loan service, interest rate, terms and conditions are decided by the world bank. 3. The bank grant loan for a particular projects duly submitted to the bank by the member country. 4. The debtor nation has to repay either in reserve currencies or in the currencies in which the loan was sanctioned.
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  WORLD TRADE ORGANISATION (WTO)
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  World Trade Organisation •Objectives of World trade organisation: • 1. To raise the standard of living in member countries by ensuring full employment and expanding production and trade in goods and services • 2. To develop an integrated, viable and durable multilateral trading system • 3. To promote sustainable development in member countries by the optimum use of natural resources • 4. To help developing countries to get a share in the growth international trade • 5. To reduce tariff and other trade barriers among member countries and to eliminate discriminatory treatment in international trade relations • 6. To ensure linkages between trade policies environmental policies and sustainable development
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  Functions of WTO: •1. It provides the form for negotiations among members concerning their multilateral trade relations • 2. It facilitates the implementation, administration, and operation of the objectives of the multilateral trade agreements • 3. It administers the “trade review mechanism” • 4. It administers the rules and procedures governing the settlement disputes. • 5. It is a watchdog of international trade.it examines the trade regimes of individual members • 6. It trade disputes that cannot be solved through bilateral talks are forwarded to the WTO dispute settlement “Court” • 7. It is also consult with international organisation like IMF and World Bank for taking decision on world trade.
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  Euro Dollar Market TheMeaning of Euro-Dollar • By Euro-dollar is meant all U.S. dollar deposits in banks outside the United States, including the foreign branches of U.S. banks. A Euro-dollar is, however, not a special type of dollar. It bears the same exchange rate as an ordinary U.S. dollar has in terms of other currencies. • Euro-dollar transactions are conducted by banks not resident in the United States. For instance, when an American citizen deposits (lends) his funds with a U.S. Bank in London, which may again be used to make advances to a business enterprise in the U.S., then such transactions are referred to as Euro-dollar transactions. All Euro-dollar transactions are, however, unsecured credit. • The characteristics OF Euro-Dollar Market : • 1. It has emerged as a truly international short-term money market. • 2. It is unofficial but profound. • 3. It is free. • 4. It is competitive. • 5.It is a more flexible capital market.