BICS to gain largest IMF Quota Shares

The International Monetary Fund(IMF) has been developed to stabilize international exchange rates and facilitate development with an macroeconomic perspective. It also provides its members with financial and technical assistance.

Brazil, China, India, South Korea and Mexico will recieve the largest share of fund from IMF so as to fasten the speed of economic development in these key economies. The 5 nations will be among the 54 nations which will recieve extended shares once the 2008 reforms will be implemented. While these 54 countries will get an increase in quota shares of 4.9 percentage points, 135 countries will see an increase in voting share of 5.4 percentage points due to the combined effects of the increase in quotas and basic votes. Quotas basically are the voting powers of a country in the 185 countries drafted committee.

The final verdict will be done in the Conference of Finance Leaders and Governors from 24th to 26th April. The other issues included are the Rebalancing of Countries in 2011, this may include strengthening on Developing countries hold in IMF quotas.

This capital quota share hike has been due to the double-punch the Developing economies have to bear including the Crashing of Internal Capital Indices along with recessionary acts leading to weakening of Gross Domestic Product(GDP). The major notion behind this initiative is to influx more capital in these economies.

Many other strategic steps including development of a riskfree investing environment and enhancement in analysis of risk and linkages in the real economy and financial sector.

G-20 London Summit

India's Prime Minister Dr Manmohan Singh outlined his hopes for G20 London Summit in a statement before he travelled to the UK.

In it, Dr Singh said the G-20 has an important role to play in addressing the global economic and financial slowdown by taking coordinated and purposeful action.

The report said as follows:

"It is important that the Summit took credible decisions to reverse the current slowdown and to instil a sense of confidence in the global economy"

The statement set out a number of issues that Dr Singh views as requiring particular focus. The need to:

1. Ensure the adequate flow of finances to the developing countries to overcome the reversal of international capital flows and not retard progress towards the "Millennium Development Goals"
2. Avoid protectionism in the trade of both goods and services
3. Facilitate trade finance
4. Reform and restructure international financial market

Dr Singh emphasized that the time has come for the international economic and financial architecture to reflect contemporary economic strengths.

Although the meet do provide some of the most required stimulus to Global Economy with a power-packed 1.1t$ stimulus, the summit was the least to bother for India.

Seeing India as the 4th most strong country of G20, expectations were more on accomplishing goals concerning all Developing Countries including BRIC(Brazil, Russia, India, China). But the Summit was more like a G8(G7 + Russia) + China affair with India as a spectator to some extent.

The only good thing which happened was the statement by our PM:

"We need no more foreign help to strengthen our nation by asking IMF to interfere but would like to help IMF by providing an AID if required "

Though the outcome of the meet was not in India's favour many of those "so-called respectable people" wrote it to be a path breaking success for India.

It is clearly visible in the link that its US who is leaning not India.

G7 and G20 countries

G7 Countries

The G7 was an informal gathering of heads of state and governments of the world's most advanced economies (Canada, France, Germany, Italy, Japan, the United Kingdom and the United States).

In the early stages, members of the G7 were accompanied at meetings by their foreign and finance ministers. In 1998, the British Presidency decided to separate the ministerial meetings from the original summit in order to keep the original concept of a small, informal gathering. In the same year, Russia joined what then became the G8. Since 2005, the G8 has been holding dialogues with the major emerging economies of Brazil, China, India, Mexico and South Africa.

G8 finance ministers meet once a year before the actual summit. However, finance ministers also meet in general three more times (early in the year, and at the margin of the spring and annual meetings of the international financial institutions), but in a G7 (instead of a G8) framework. . Since the introduction of the euro, the European Central Bank (ECB) and the President of the Eurogroup also attend. (Courtesy:Wikipedia)

The G7/8 deals with such issues as: global economic outlook and macroeconomic management, international trade, energy, climate change, and relations with developing countries.

G20 Countries

The G20 (Group of 20) is a group representing 19 of the world's largest economies plus the European Union that are strategically important and influential in the world economy. The G20 was formed as a new forum for cooperation and consultation on matters pertaining to the International Financial System (IFS).

The membership of the G20 comprises the finance ministers and central bank governors of the G7, 12 other key countries, and the European Union Presidency (if not a G7 member); the European Central Bank; the Managing Director of the International Monetary Fund; the Chairman of the IMFC; the President of the World Bank; and the Chairman of the Development Committee.

The G20 is an informal forum that promotes open and constructive discussion between industrial and emerging-market countries on key issues related to global economic stability.

The members of the G20 are the finance ministers and central bank governors of 19 countries: Argentina, Australia, Brazil, Canada, China, France, Germany, India, Indonesia, Italy, Japan, Mexico, Russia, Saudi Arabia, South Africa, South Korea, Turkey, the United Kingdom and the United States of America. The European Union is also a member, represented by the rotating Council Presidency and the European Central Bank.

CAN U UNDERSTAND BSE!!! BET U CANT......

Following the so called sub-prime crisis and the hard hitting by the internal operators, countries like India and Brazil have come back strongly...

Though speclated at a CALL of 2800 and PUT at 3400 the market was an obvious marker to 2800 mark or so......... With no such great good news and with a handful-some speeches of FinMin and other big Tycoons including Mr. Sood, Mr. Ambani, Mr. Mallya, Mr. Goyal and many others the market has come up strongly..

This punches a question out to how come the market wasn't visible to effect of signing of the so called Important N-Deal??

Can we conclude that the bulling is just due to these speeches and some reforms of RBI!!!

Indian BOP has been imbalanced by many forces and is more imbalanced than it was previous.....
Then how did this impact bull the Market?
Such Cuts and speeches were there at time of downfall... Then how did such a boost came up this week!!!
External pressures have yet not been settled down!!!
Still now Japanse Banks are hit and one of them has been declared Bankrupt(on Saturday)......
Seeing such a big bank succumbed(that too Asian) its sibblings too not doing the great job adding on the Near 10% decrement in each Foreign Market on Monday our Exchange Bulled up!!!

Such a gamble can happen only in India.....

I would still prefer to keep my money safe out as the CALL strategy can any time hit the market!!