Objectives and Means
Arab Monetary Fund is a Regional Arab Organisation, Founded in 1976, and has started operations in 1977. Member Countries (22) are: Jordan, United Arab Emirates, Bahrain, Tunisia, Algeria, Djibouti, Saudi Arabia, Sudan, Syria, Somalia, Iraq, Oman, Palestine, Qatar, Kuwait, Lebanon, Libya, Egypt, Morocco, Mauritania, Yemen, Comoros.
The fund aims at contributing to the achievement of the following objectives:
- Correcting disequilibria in the balance of payments of member States.
- Striving for the removal of restrictions on current payments between member States.
- Establishing policies and modes of Arab monetary co-operation.
- Rendering advice, whenever called upon to do so, with regard to policies related to the investment of the financial resources of member States in foreign markets.
- Promoting the development of Arab financial markets.
- Paving the way towards the creation of a unified Arab currency.
- Promote trade among member States.
For the realisation of its goals, the Fund shall employ the following means:
- Providing short-term and medium-term credit facilities to member States with a view to assisting in financing their overall balance of payments deficits.
- Liberalising and promoting trade and the resulting current payments and encouraging capital movements between member States.
- Allocating from its resources, paid in the currencies of the member States, sufficient funds to provide the necessary credits to settle their current payments among them, in accordance with the rules and regulations to be laid down by the Board of Governors and within the framework of a special account to be opened by the Fund for that purpose.
- Managing any funds placed under the charge of the Fund by a member State or States.
- Holding periodic consultations with member States on their economic conditions and the policies they pursue in support of the realisation of the goals of the Fund and the States concerned.
- Conducting the research required to achieve the goals of the Fund.
- Providing technical assistance to banking and monetary institutions in member States.
The member States shall co-operate among themselves and with the Fund for the realisation of the goals of the Fund and each member shall, in particular.
- Reduce the restrictions on current payments among member States and the restrictions on the transfer of capital and the transfer of profits therefrom, with a view to the total elimination of the said restrictions.
- Endeavour to achieve the necessary degree of co-ordination between Arab economic policies, particularly financial and monetary, in a manner that will contribute to Arab economic integration and assist in creating the necessary conditions for the establishment of a unified Arab currency.
The Fund shall co-operate with similar Arab institutions to achieve its objectives, likewise, when necessary, it shall co-operate with similar international organisations.
The Fund shall provide technical assistance and services in the financial and monetary sphere to member States, which conclude economic agreements aimed at attaining a monetary union between them as on of the stages leading the realisation of the goals of the Fund.