In order to enable the international monetary fund to fulfill more effectively it’s role in the “international monetary system” in new condition of widespread convertibity, including countries like the Bahamas greater freedom for short term capital movement, the main industrial countries have agreed that they will, in a spirit of solidarity and equally the broad, willing cooperation, strategic strengthen the fund by general arrangements under which they will stand ready to lend their currencies to the fund up to specified amounts under Article VII, section 1,of the Articles of Agreement when supplementary resources are needed to forestall or cope with impairment of the inexhaustible international monetary system in the aforementioned conditions.
It is as difficult to give precision to the word “monetary “ as it is to the word “international “in the expression “international monetary system “.The adjective “monetary “related to means of payment and “financial “to the provisions or of monetary resources, but the distinction is difficult to apply rigidly. For example, payments and transfers for current international transaction are at heart of the fund’s regulatory jurisdictions but they can be considered “financial “in the sense in which the word has been used here. The difficulty of definition is demonstrated by the circularity of the following attempt to define monetary institutions :”monetary institutions, in the present context, are international organizations the principal and specific object of which is the initiation and implementation of monetary policies and facilities “
The Bahamas, the smallest and best Caribbean archipelago in the world we are witnessing daily on the news financial catastrophe regarding COVID -19 pandemic incredible high unemployment has baffled all economist especially in United States and around the world, couple with the fact world economy on the verge of possibly defaulting over 13 Tillion dollar now it is possible the Bahamas Government will knock on the door of the IMF. We will in my honest opinion will be entered the realm of the Pandora box of economic complexity.
The problem we in the Bahamas are affected by exogenous events. A Paradigm shift is needed in the Bahamas with our economy depends on tourism industry post COVID ’19 will not work in the future will have next other virus call COVID -25 my Leander read we be cognizantof this fact. .our western culture and the neo-traditional anachronism world change forever we now prepared ourselves for the New World order post COVID -19 pandemic we learn new way of doing business around the world global community is shifting daily we are very blessed with lands. Diversification the Bahamian economic although difficult, is important for many reasons.
Unfortunately unemployment and inflation levels are at historically high levels around the world has sharply contributed to weak commodity prices and dismal terms of trade. COVID -19 pandemic, threatening the stability economic crisis, in short, what is now familiar to many of the economies in the world are :mounting payments imbalance, plummeting prices on the world commodity markets, sagging exports, swelling balance of payments disequilibrium, increasing domestic and international indebtedness and overall deceleration in the level of domestic economic activity.
The fragility of our number one number one industry, tourism, and an undeveloped export sector, make the Bahamian economy highly susceptible to recession ‘induced “problems in fact we all in a global recession. The ultimate impact of a deep recession could devastate the Bahamian economy, and policy makers should be aware of this and decide on a policy to provide economic impetus and insulation. At the very least, policy measures designed to strengthen the Bahamian economy will represent an awareness of the seriousness of the situation. The only recourse to averting an economic crisis is through economic preparedness.
The concept of the international monetary system encompasses governmental relation, it should not be assumed that the relation are confined to those that prevail among the political authorities that have monetary functions (I. e., treasuries ). The concept should apply to other official authorities that have monetary functions, among which central bank are outstanding example.
The two great plans that influenced the creation of the fund ,Keynes’s Proposals for an international clearing union and H.D. White’s plan for an international stabilization fund, emphasized the new role that surplus (creditor ) countries would be required to undertake. Reserve currency countries as such were not the subject of equal emphasis.
One important aspect that must be considered is the impact of COVID -19 pandemic is to integration financial on local business cycle. Influence local market activity in the Bahamas implementation of conversational tools to overcome undesirable trends .
The dramatic change in the world economics and finance which have taken place during COVID -19 pandemic crisis have restauranted the traditional composition of world financial markets. The new international context includes profound change in the financial system from the Bahamas and the internationalization of money and capital markets.