Question

What are the international and regional institutions that comprise the global monetary and financial system? What role do these institutions play in promoting global business operations?

Answer 1

The global monetary and financial system is comprised of international and regional institutions and regulators. Some of them include The International Monetary Fund (IMF), Bank for International Settlements (BIS), other national agencies such as global banks and hedge funds, and government departments. These institutions play an important role in promoting global business operations by ensuring that the international monetary system remains stable. They are responsible for exchange rates and international payments that enables foreign countries (and consumers) to do business together. The system is in place to promote sustainable economic growth, increase living standards, and to reduce poverty levels. Since the recent global crisis, the IMF and other institutions have been re-evaluating their mission in an attempt to cover all macroeconomic and financial issues that may have an impact on global stability.

List of some important international institutions is as below:

IMF	International Monetary Fund
IBRD	International Bank for Reconstruction and Development
IFC	International Finance Corporation
IDA	International Development Association
ICSID	International Center for Settlement of Investment Disputes
MIGA	Multilateral Investment Guarantee Agency
GATT	General Agreement on Tariffs and Trade

List of some other important regional financial institutions is as below:

BIS	Bank of International Settlements
EIB	European Investment Bank
AACB	African Association of Central Banks
IIB	International Investment Bank
NIB	Nordic Investment Bank
SEACEN	South East Asian Central Banks Center
BSTDB	Black Sea Trade and Development Bank
ECB	European Central Bank