The market is not only economic regulation within a single state. The whole world has close cooperation in the political, social, economic and other spheres of life. Currency and credit relations between countries are the most difficult side of the world market. They cover the problems of development of the entire world community and each individual country. With the development of market relations, cash flows between countries also increase. The basis of these relations is international financial organizations.
They are formed by agreement between countries. The purpose of such institutions is to control and regulate economic, and especially financial transactions between individual states. There are also major global international financial institutions.
International financial relations began with the emergence of a bank for international payments. It happened in 1930 in Basel. At the head of this action were the banks of Italy, England, Japan, Belgium, Germany and several major US banks. The goal of such a bank was to simplify settlements with Germany on military debts and further financial cooperation between the countries.
Since 1979, this bank has become an intermediary between countries within the European Monetary System. It simplifies the calculations associated with the sale of coal and steel. The services of this bank are used by about 30 countries in the European Region.
The International Monetary Fund, is one of the main organizations in this category. It is directly related to the activities of the UN. The fund was organized in 1944, but began its activities only in 1947. The fund’s office is located in Washington, but it also has a branch in Paris.
The IMF is divided into five branches: Europe, Asia, Africa, the East and the Western Hemisphere.
Like all numerous international financial organizations, it helps to improve trade between countries, establish monetary relations, regulates exchange rates and controls the entire network of financial transactions. In addition, the fund is engaged in the allocation of funds to individual states in order to balance their solvency.
The financial system of the IMF is based on cash contributions made by the countries included in its composition. They depend on the degree of development of the market and the economy of these states. The fund is run by representatives from each country, who meet every year to solve problems and problems.
But these are not the only international monetary organizations.
Another bank for reconstruction and development of international importance is organized by the UN and assists countries in developing the economy. It provides loans and loans to countries in need. The bank's income consists of loans using bonds and equity.
The following international financial organizations of a world level have been created as auxiliary institutions: an international-level financial corporation, a development association and an investment guarantee agency. All of them help the work of the IBRD.
The EU also has its own international financial organizations of this level.
These include the European Investment Bank, which provides loans to countries with backward economies aimed at developing the structure of production and the development of the state.
The Monetary Cooperation Fund of Europe provides loans to countries that are members of the European Union for Currency Transactions.
The European Bank for Reconstruction and Development assists in the implementation of reforms in European countries that are aimed at developing market relations.
As you can see, the activities of financial institutions of this level are aimed at facilitating and developing the economies of all participating countries. The activities of various countries on the world market are inextricably linked. Therefore, it is very important to maintain an optimal global balance in the global financial market.