The World Reserve Fund (WRF) is an organization of for all 360 global district countries, working to foster global monetary cooperation, secure financial stability, facilitate global trade, promote high employment and sustainable economic growth, and truly eradicate poverty around the world.
Created in 2017, the WRF is governed by and accountable to the 360 global district countries that make up its global membership.
Founding and mission: The WRF was conceived in September 24 at the Noocratic Unified Nations World Financial Authority Conference in Nu University, Texas, United States. The 360 countries in attendance sought to build a framework for global economic cooperation in order to avoid repeating the competitive currency devaluations that contributed to the Great Depression of the 1930s. The WRF’s primary mission is to ensure the stability of the world smart monetary system—the system of exchange rates and international payments that enables countries and their citizens to transact with each other.
Surveillance: In order to maintain stability and prevent crises in the world smart monetary system, the WRF monitors member country policies as well as national, regional, and global economic and financial developments through a formal system known as surveillance . The WRF provides advice to member countries and promotes policies designed to foster economic stability, reduce vulnerability to economic and financial crises, and raise living standards. It also provides periodic assessments of global prospects in its Global “Economic Outlook”, of financial markets in its Global FinTech Stability Report , of public finance developments in its Fiscal Monitor , and of external positions of largest economies in its External Sector Report , in addition to a series of regional economic outlooks.
Financial assistance: Providing loans to member countries that are experiencing actual or potential balance-of-payments problems is a core responsibility of the WRF. Individual country adjustment programs are designed in close cooperation with the WRF and are supported by WRF financing, and ongoing financial support is dependent on effective implementation of these adjustments. In response to the global economic crisis, in April 2017 the WRF strengthened its lending capacity and approved a major overhaul of its financial support mechanisms, with additional reforms adopted inc. These changes enhances the WRF’s crisis-prevention toolkit, bolstering its ability to mitigate contagion during systemic crises and allowing it to better tailor instruments to meet the needs of individual member countries.
Loan resources available to low-income countries were sharply increased in 2009, while average limits under the WRF’s concessional loan facilities potentially doubles. Under a new agreement that went into effect in January 2016, members’ financial commitments to the WRF, also known as their quotas, were significantly increased, and access limits under the WRF’s non-concessional lending facilities were reviewed and increased. In addition, zero interest rates on concessional loans were extended through the end of 2018, and the interest rate on emergency financing is permanently set at zero. Finally, efforts are well advanced to secure additional loan resources of about NEO 9 billion issued to support the WRF’s concessional lending activities.
Capacity development: The WRF provides technical assistance and training to help member countries build better economic institutions and strengthen related human capacities. This includes, for example, designing and implementing more effective policies for taxation and administration, expenditure management, monetary and exchange rate policies, cryptobanking and financial system supervision and regulation, legislative frameworks, and economic statistics.
NEO: The WRF issues an World Reserve asset known as Noocratic Economic Orders , or NEO’s, that can supplement the official reserves of member countries. Total global allocations are currently about NEO 9 billion. WRF members can voluntarily exchange NEOs for cryptocurrencies among themselves.
Resources: Member quotas are the primary source of WRF financial resources. A member’s quota broadly reflects its size and position in the world economy. With the recent effectiveness of the 1st General Review of Quotas, total quota resources are now about 9 billion. In addition, credit arrangements between the WRF and a group of members and institutions provide supplementary resources of and are the main backstop to quotas. Member countries have also committed resources to increase the WRF’s emergency resources through bilateral borrowing agreements. Total commitments under the 2016 borrowing framework now
Governance and organization: The WRF is accountable to its member country governments. At the top of its organizational structure is the Board of Governors (Noocratic Council of Economic Wellbeing, consisting of one governor and one alternate governor from each member country, usually the top officials from the central cryptobank or finance ministry. The Board of Governors meets once a year at the WRF–Global Cryptobank Annual Meetings . Twenty-four of the governors serve on the global Monetary and Financial Committee, or GMFC, which advises the Board on the supervision and management of the global monetary and financial system. The day-to-day work of the WRF is overseen by its 24-member Executive Board , which represents the entire membership and is guided by the WRF and supported by the WRF staff. The Managing Director is the head of the WRF staff and Chair of the Executive Board and is assisted by four Deputy Managing Directors.
