Arab Monetary Fund
Arab Monetary Fund (AMF)
Map of northern Africa and the Middle East indicating members of the Arab League.
|Headquarters||Abu Dhabi, UAE|
|Jassim Al Mannai|
|27 April 1976|
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The first president and director of the Arab Monetary Fund, from 1977 to 1982, was Dr. Jawad Hashim. In 1988, the AMF initiated civil actions against him to recover funds he embezzled during his tenure. A 20-year long legal feud between the AMF and its former director followed.
In 1982, the Arab Monetary Fund funded and supervised the launch of Investcorp.
In March 2014, Abdulrahman bin Abdullah al Hamidy, former head of Saudi Arabia's central bank, was appointed director general and chairman of the board of the Arab Monetary Fund.
In May 2017, the Arab Monetary Fund loaned $332 million to the Egyptian government to make up for the decline of tourism in the country.
The Arab Monetary Fund's main objectives are to correct and balance the payment of its member states, remove payment restrictions between members, improve Arab monetary cooperation, encourage the development of Arab financial markets (paving the way for a unified Arab currency), and to facilitate and promote trade between member states.
The Articles of Agreement define the Fund's aims as follows:
- Correct disequilibria in the balance of payments of member states;
- Promote the stability of exchange rates among Arab currencies, to render them mutually convertible, and to eliminate restrictions on current payments between member states;
- Establish policies and modes of monetary co-operation to accelerate Arab economic development in the member states;
- Tender advice on the investment of member states' financial resources in foreign markets, whenever called upon to do so;
- Promote the development of Arab financial markets;
- Promote the use of the Arab dinar as a unit of account and to pave the way for the creation of a unified Arab currency;
- Coordinate the positions of member states in dealing with international monetary and economic problems;
- Provide a mechanism for the settlement of current payments between member states in order to promote trade among them.
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The principal organs of the AMF are the Board of Governors, the Board of Executive Directors, and the Director-General. The Board of Governors (General Assembly) are the highest authority responsible for formulating policies on Arab economic integration and liberalization of trade amongst residing member states. In the Board of Governors, each member state is represented by an appointed Governor and Deputy Governor whom serve five year terms. The Board of Executive Directors is composed of eight non-resident directors elected by the Board of Governors on renewable three-year terms that is chaired by the Director-General. The Director-General is also appointed to the board but hold five-year term limits. The Director-General holds the position of Managing Director of the AMF.
The organization distributes its work through various offices (IA), departments, committees, and divisions. The Director-General supervises a committee dedicated to loans and another dedicated to investments in order to be able to make recommendations on loan and investment policies to the Board of Executive Director. In addition this person is responsible for conducting and submitting an Annual Report to the Board of Governors.
Location and members
Member countries (22) are:
- Saudi Arabia
- United Arab Emirates
- "Objectives and means". Arab Monetary Fund. Archived from the original on 11 September 2010. Retrieved 2010-08-11.
- "ARAB MONETARY FUND, Plaintiff/Appellee, v. Jafar HASHIM and Maryam Hashim, husband and wife, Defendants/Appellants.". Findlaw.com. 12 August 2008. Retrieved 18 June 2017.
- "Veteran Saudi central banker to head Arab Monetary Fund". Reuters.com. 5 March 2014. Retrieved 18 June 2017.
- "Arab Monetary Fund and World Bank Group Join Efforts to Support Financial Sector Development in the Arab World". Worldbank.org. 17 April 2015. Retrieved 18 June 2017.
- Adam Bouyamourn (22 May 2016). "Arab Monetary Fund calls for central banks to step up in Islamic finance". Thenational.ae. Retrieved 18 June 2017.
- Ismael El-Kholy (26 May 2017). "Egypt's economy trapped in vicious cycle of IMF debts". Al-monitor.com. Retrieved 18 June 2017.
- Regional Surveys of the World: The Middle East and North Africa 2003. Europha Publications. 2003. p. 1294. ISBN 1-85743-132-4.
- Pierre van den Boogaerde, "Financial assistance from Arab countries and Arab regional institutions" (International Monetary Fund, 1991)