Define Foreign Exchange | Objectives Of OPEC | Functions of IMF

define Foreign exchange, explain three objectives of the organization of petroleum exporting countries OPEC

In this page we have define Foreign exchange and also explain the objectives of the organization of petroleum exporting countries OPEC.

Define Foreign Exchange

Foreign exchange refers to exchanging the currency of one country for another at prevailing exchange rates. Let us take a close look at the meaning of foreign exchange. Different countries have different currencies. Foreign exchange converts the currency of one country into another.

 

Explain three objectives of the organization of petroleum exporting countries OPEC

  1. To bring together and coordinate the petroleum policies of its members in order to achieve stable and equitable prices for petroleum producers and to guarantee a reliable, cost-effective, and efficient supply of crude oil.
  2. To developing countries with a sufficient rate of return on investment.
  3. To control oil supply in order to stabilize oil prices on the global market and prevent swings from harming the economy of oil-producing and oil-consuming nations.

Functions of international monetary fund IMF

(i)Regulatory functions: IMF functions as a regulatory body and as per the rules of the Articles of Agreement, it also focuses on administering a code of conduct for exchange rate policies and restrictions on payments for current account transactions.

(ii)Financial functions: IMF provides financial support and resources to the member countries to meet short term and medium term Balance of Payments (BOP) disequilibrium.

(iii)Consultative fun­ctions: IMF is a centre for international cooperation for the member countries. It also acts as a source of counsel and technical assistance.
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Check Out: WAEC GCE Economics 2022 Questions And Answers

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