What is the World Bank?
To put it shortly, the World Bank is an international organization created for providing aid to developing countries. It contributes to developing their economies and fighting poverty.
Who? Where? When?
The World Bank international organization was founded in 1945 and is headquartered in Washington, USA. It happened on 27th December at the Bretton Woods conference with the assistance of the UN (along with the creation of the IMF). The Bank is governed by President. Since 1st July 2012, the Bank's President has been Jim Yong Kim.
The bank includes 2 institutions:
1.the International Bank for Reconstruction and Development (IBRD)
2.and the International Development Association (IDA)
To perform its mission, the World Bank has set a number of specific tasks and goals. They may be both long-term and short-term, depending on how difficult they are to deal with. For example, the Bank has defined the development goals for the millennium that must have been reached by the end of 2015: decreasing misery, famine and children's death rates, promoting gender equality, improving maternity protection, providing primary education everywhere in the world, protecting environment and contributing to its sustainable development, fighting sexually transmitted diseases, and so on.
How the World Bank influences financial markets
The global aspect of the World Bank's tasks and the range of its powers allow it to not only affect the currency market, but also regulate it if necessary. Speaking about national currencies, we should not forget about the states where these currencies are used. For instance, these states may be credited by the World Bank; they may ask for financial aid or be offered low interest rates. What does it tell us about? It tells us about the World Bank's huge influence on the world's economy. Its actions may define the fate of various countries and their currencies. It may happen in a variety of ways. If the country asks the World Bank for help, its rating and its currency rate are affected at once. Any interaction between a country and the World Bank may provide food for rumours and speculation since the Bank's all actions and decisions are regularly published. And we don't even need to remind you that Forex is extremely sensitive to this kind of information.
See you later, friends!
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.