IMF supports the Special Drawing Rights for its members

4/26/2016 0:00

BAGHDAD - Imad Emirate
He said the scholar Dr. .abd Karim Jaber: The International Monetary Fund is the most important institution at the global level concerned with the affairs of macroeconomic policies (monetary and fiscal) in terms of design, coordination and implementation is also concerned with the affairs of funding.

He said Jaber said the fund is based on the idea that economic growth depends on the economic stability and the establishment of an institutional framework for the market economy and openness to the global economy and the restructuring of the economy in line with market requirements, and undertake internalized in this fund state to take remedial measures and corrective economy.

He added that the main task of the Fund is to provide help and facilities short and medium term of the member states to meet the balance of payments deficits, and that the main financing instruments followed by the International Monetary Fund is (SDR), which came the birth of these rights are sometimes known as the (gold leaf) in the midst of the monetary crisis that hit the monetary system, which was established under the Convention (Bretton Woods) during the period between 1965.1971, which are monetary units or arithmetic book entries recorded in the arithmetic record of foreign transactions.

And that is obtained from the Member States, without charge, as they do not cover any existing last, what to accept the state as a member of the Fund until the determined a stake equal to its contribution to the Fund's capital and usually expresses this share in SDR, and at the birth of Special Drawing Rights It was equivalent to the original value of the dollar in gold which is equal to 888,671.0 grams of gold or the equivalent of dollars.

Jaber to draw that as a result of the volatility that has plagued the currency rates associated with special basket of currencies SDR to maintain the value and distinguish them from the rest of the currency has been linked to a basket of currencies, I'm not eleven countries on the basis of the extent of the contribution of each of these countries in world exports of 1968.1972 which has to be the contribution of each to be greater than 1 percent of the state. He concluded d. Abdul Karim Jaber, that the establishment of SDR is an important step to reform the monetary system, which has suffered years of decline in the absolute size of the international reserves (deterioration ratio of reserves to imports of most countries of the world), as a result of the suffering of the monetary system of trust components of liquidity at the time (of gold, the dollar), Add to the problems of the deficit in the balance of payments of countries co-partners of the United States of America.