Arab Monetary Fund

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DEFINITION of 'Arab Monetary Fund'

A sub-organization of the Arab League that facilitates monetary cooperation, trade and financial market development among member states. The fund's 22 member states include Algeria, Bahrain, Egypt, Iraq, Libya, Morocco, Saudi Arabia, Somalia and the United Arab Emirates.

INVESTOPEDIA EXPLAINS 'Arab Monetary Fund'

The Arab Monetary Fund was founded in 1976 and is headquartered in Abu Dhabi. It is managed by a board of governors, board of executive directors and chairman of the board. To accomplish its goals, the fund provides short and medium-term credit, liberalizes and promotes trade, offers technical assistance to banks and other monetary institutions, helps settle current payments and works with international organizations. The fund requires its member countries to reduce restrictions on current payments and transfer of capital and to coordinate their economic policies.

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