GEOG 130 Lecture Notes - Lecture 24: Weighted Arithmetic Mean, Chiang Mai Initiative, Emerging Power

• School: University of Maryland
• Department: Geographical Sciences
• Course: GEOG 130
• Professor: Luna

Document Summary

Based in washington dc but operates independently of the world bank group. To help countries with balance of payment problems. One country no longer means one vote. Membership is open to all independent nations and included 188 countries in. Each member is assigned a quota whose value is based on the weighted average value of five major currencies. Each member quota is relative to position in the world economy which determines its maximum contribution to the imf"s financial resources. Amount of hte quota subscription determines how large a vote a member will have in imf deliberations. How much foreign exchange it may withdraw from the fund. How many loans it will receive in periodic allocations. Member can use foreign exchange to extricate itself from its balance of payments problem. Borrower pays a below market rate of interest. Balance of payment: a country"s record of economic transactions with other countries (exports-imports)