Diplomacy & Politics Glossary

The IMF and World Bank created to promote international monetary cooperation and economic development.

The process of removing restrictions on capital flows into and out of a country to encourage investment and financial integration.

Government measures to regulate cross-border capital movements to stabilize the economy.

Rapid movement of large sums of money out of a country due to economic or political instability, often harming the domestic economy.

The degree of fluctuation in cross-border financial investments and loans over a short period, affecting economic stability.

Additional capital banks must hold during economic expansions to protect the financial system during downturns.

An agreement between two parties to exchange principal and interest payments in different currencies over a set period.

The spread of financial instability from one country or market to others due to interconnected financial systems.

An international organization providing financial support and advice to countries facing balance of payments problems.

A global messaging network facilitating secure financial transactions among banks worldwide.

An international institution that offers loans and development assistance to reduce poverty and support development projects.