ASSIGNMENT OF MFM

SUBMITTED TO: MISS SUMAN ARORA

SUBMITTED BY: 10MBA 32 10MBA04

WORLD BANKS

The World Bank is an international financial institution that provides loans to developing countries for capital programmes. The World Bank's official goal is the reduction of poverty. By law all of its decisions must be guided by a commitment to promote foreign investment, international trade and facilitate capital investment. HISTROY The World Bank is one of five institutions created at the Bretton Woods Conference in 1944. The International Monetary Fund, a related institution, is the second. Delegates from many countries attended the Bretton Woods Conference. The most powerful countries in attendance were the United States and United Kingdom, which dominated negotiations. Members The International Bank for Reconstruction and Development (IBRD) has 187 member countries, while the International Development Association (IDA) has 168 members. Each member state of IBRD should be also a member of the International Monetary Fund (IMF) and only members of IBRD are allowed to join other institutions within the Bank . The functions of the International Bank for Reconstruction and Development are: 1. The assistance and development of territories of its members 2. The promotion of a balanced growth in international trade. New schemes of world bank

China and India set to become established global powers Euro and renminbi tipped to join dollar as reserve currencies other developing economies predicted to flourish in recovery

SDRs (SPECIAL DRAWING RIGHT) An international type of monetary reserve currency, created by the International Monetary Fund (IMF) in 1969, which operates as a supplement to the existing reserves of member countries. Created in response to concerns about the limitations of gold and dollars as the sole means of settling international accounts, SDRs are designed to augment international liquidity by supplementing the standard reserve currencies.
SDRs per Currency unit 2 November 28, November 23, 2011 2011 November 22, 2011 November 21, 2011

Indian Rupee

0.0123796000

0.0123337000

0.0121296000

0.0123938000

SDR Interest Rate

The SDR interest rate provides the basis for calculating the interest charged to members on regular (non-concessional) IMF loans, the interest paid to members on their SDR holdings and charged on their SDR allocation, and the interest paid to members on a portion of their quota subscriptions. The SDR interest rate is determined weekly and is based on a weighted average of representative interest rates on short-term debt in the money markets of the SDR basket currencies.

International Monetary Fund. An organization set up in 1944 to lower trade barriers between countries and to stabilize currencies by monitoring the foreign exchange systems of member countries, and lending money to developing nations.

FUNCTIONS OF IMF The primary mission of the IMF is to provide financial assistance to countries that experience serious financial difficulties. Member states with balance of payments problems may request loans and/or organizational management of their national economies. In return, the countries are usually required to launch certain reforms, an example of which is the "Washington Consensus". These reforms are generally required because countries with fixed exchange rate policies can engage in fiscal, monetary, and political practices which may lead to the crisis itself. For example, nations with severe budget deficits, rampant inflation, strict price controls, or significantly over-valued or under-valued currencies run the risk of facing balance of payment crises in their future. Thus, the structural adjustment programs are at least ostensibly intended to ensure that the IMF is actually helping to prevent financial crises rather than merely funding financial recklessness.

Objectives of IMF
1.To promote co-operation among economies of world. 2. To strengthen the economies of member countries by making funds resources available to them. 3. To promote exchange stability and to facilitate the expansion and balanced growth of international trade. 4. To reduce the poverty in member countries and to promote high employment by facilitating sustainable economic growth.