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|
• Director General Chairman of the Board
|Abdulrahman A. Al Hamidy|
|27 April 1976|
• Launch Investcorp
|Part of a series on|
The first president and director of the Arab Monetary Fund, from 1977 to 1982, was Dr. Jawad Hashim. In 1982, the Arab Monetary Fund funded and supervised the launch of Investcorp. Nemir Kirdar was transferred from Chase, where he advised the AMF, to Abu Dhabi to develop the new fund. Omar Aggad was the first investor in this fund.
Still in 1982, the AMF inaugurated the Arab Monetary Fund building in Abu Dhabi.
In 1988, the AMF initiated civil actions against its former president Jawad Hashim to recover funds he embezzled (estimated $50 million) during his tenure. A 20-year long legal feud between the AMF and Jawad Hashim followed.
In 1992, the AMF published its yearly Arab Economic Report in which the institution revealed that Arab countries had lost a total of $620 billion during the invasion of Kuwait. $84 billion alone were direct payments from Saudi Arabia, Kuwait and the Gulf Emirates, to the United States, Britain and France, regarding military expenses.
In June 2010, the AMF granted a $76 million loan to Jordan to undertake key financial reforms. In December 2010, the AMF granted a $200 million loan to Yemen to support economic restructuring programs. $800 million had been granted to Yemen to this date. In September 2012, the AMF granted a $127 million loan to Morocco to help the country cope with the rising prices of food.
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. In April 2018, the AMF announced its intention to create its own independent regional entity for the clearing and settlement of intra-Arab payments.
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.
- "Veteran Saudi central banker to head Arab Monetary Fund". Reuters.com. 5 March 2014. Retrieved 18 June 2017.
- Nemir Kirdar (11 July 2013). Need, Respect, Trust: The Memoir of a Vision. Hachette UK. ISBN 9780297868590.
- "Arab Monetary Fund Medal - Zayed Headquarters". Numista.com. Retrieved 28 April 2018.
- "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.
- Paul Magrath (14 July 1992). "Law Report: Court will only bar 'oppressive' foreign suits: Arab Monetary Fund v Hashim and Others. Chancery Division (Mr Justice Hoffmann)". Independent.co.uk. Retrieved 28 April 2018.
- Youssef M. Ibrahim (8 September 1992). "Gulf War's Cost to Arabs Estimated at $620 Billion". Nytimes.com. Retrieved 28 April 2018.
- "Arab Monetary Fund approves $76m Jordan loan". Arabianbusiness.com. 20 June 2010. Retrieved 28 April 2018.
- "Arab Monetary Fund pledges $200m to Yemen". Arabianbusiness.com. 27 December 2010. Retrieved 28 April 2018.
- "Arab Monetary Fund in $127m loan to Morocco". Arabianbusiness.com. 25 September 2012. Retrieved 28 April 2018.
- "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.
- Mahmoud Kassem (22 April 2018). "Arab Monetary Fund to create clearing and settlement entity". Thenational.ae. Retrieved 27 April 2018.
- 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)