Forex Assignment 1

World Bank Group,
international organization affiliated with the United

Nations (UN) and designed to finance projects that enhance the economic
development of member states. Headquartered in Washington, D.C., the bank is
the largest source of financial assistance to developing countries. It also
provides technical assistance and policy advice and supervises—on behalf of
international creditors—the implementation of free-market reforms. Together
with the International Monetary Fund (IMF) and the World Trade Organization, it
plays a central role in overseeing economic policy and reforming public
institutions in developing countries and defining the global macroeconomic
agenda.
Origins
Founded in 1944 at the UN Monetary and Financial Conference (commonly

known as the Bretton Woods Conference, which was convened to establish a
new, post-World War II international economic system, the World Bank officially
began operations in June 1946. Its first loans were geared toward the postwar
reconstruction of Western Europe. Beginning in the mid-1950s, it played a major
role in financing investments in infrastructural projects in developing countries,
including roads, hydroelectric dams, water and sewage facilities, maritime ports,
and airports.
The World Bank Group comprises five constituent institutions:
The International Bank for Reconstruction and Development (IBRD),
The International Development Association (IDA),
The International Finance Corporation (IFC),
The Multilateral Investment Guarantee Agency (MIGA),
The International Centre for Settlement of Investment Dispute (ICSID
The International Bank for Reconstruction and Development (IBRD)
The International Bank for Reconstruction and Development (IBRD) is a global

development cooperative owned by 189 member countries. As the largest
development bank in the world, it supports the World Bank Group’s mission by
providing loans, guarantees, risk management products, and advisory services to
middle-income and creditworthy low-income countries, as well as by coordinating
responses to regional and global challenges.
The World Bank Group engages with middle-income countries (MICs) both as
clients and shareholders. These countries are major drivers of global growth,
home to major infrastructure investments, and recipients of a large share of
exports from advanced economies and poorer countries. Many are making rapid
economic and social progress, and they play an ever larger role in finding
solutions to global challenges.
But MICs also have more than 70% of the world’s poor people, often in remote
areas. And limited access to private finance makes these countries vulnerable to
economic shocks and the crises that cross borders, including climate change,
forced migration, and pandemics. The World Bank is an essential partner to MICs,
which represent more than 60% of IBRD’s portfolio.
 We provide a combination of financial resources, knowledge, and technical

services.
 Our strategic advice helps governments reform to improve services,

encourage more private investment, and innovate and share solutions.
 We partner with countries as challenges emerge and evolve, through

innovative financial products and a wide range of global forums.
Above all, we help ensure that progress in reducing poverty and broadening
prosperity can be sustained. We place special emphasis on supporting lower-
middle-income countries as they move up the economic chain, graduating from
IDA to become clients of IBRD. We are also expanding capacity to help countries
dealing with fragility and conflict situations. And as a long-term partner, we step
up our support to all MICs in times of crisis.
IBRD’s Services
Through our partnership with MICs and creditworthy poorer countries, IBRD
offers innovative financial solutions, including financial products (loans,
guarantees, and risk management products) and knowledge and advisory services
(including on a reimbursable basis) to governments at the national and
subnational levels.
IBRD finances investments across all sectors and provides technical support and
expertise at each stage of a project. IBRD’s resources not only supply borrowing
countries with needed financing, but also serve as a vehicle for global knowledge
transfer and technical assistance.
Advisory services in public debt and asset management help governments, official

sector institutions, and development organizations build institutional capacity to
protect and expand financial resources.
IBRD supports government efforts to strengthen public financial management as
well as improve the investment climate, address service delivery bottlenecks, and
strengthen policies and institutions.
The IBRD finances its activities from the shares its members hold, as well as
borrowing on international capital markets by issuing World Bank bonds. The
Bank raised US$54.0 billion worth of capital in fiscal 2019 from bonds issued in 27
different currencies
Since 1959, the IBRD, which is backed by world governments, has had a triple-
A credit rating, which allows it to borrow capital at lower rates.
According to a 2015 article, commissioned by the Intergovernmental Group of
Twenty-Four on International Monetary Affairs and Development—also known as
the Group of 24 (G-24)—multilateral development banks (MDBs)—such as the
IBRD—"represent one of the most successful types of international organization
created in the post-World War II era." By October 2015, although the WBG—with
its lending arms—was the only "global institution, there were more than twenty
operational 20 MDBs in the world. In 2016, the Asian Infrastructure Investment
Bank and BRICs New Development Bank began operations. Like other multilateral
development banks, (MDBs), the IBRD has a preferred credit treatment (PCT),
through which borrowers grant the MDBs a "privileged position to be first in line
for repayment, should a country face financial restrictions."
The bank also generates income from the return on its equity and from the small
margins on the loans. As the IBRD does not seek profit, it transfers part of its
excess income to the IDA ($259 million in fiscal 2019).
In 2011, the IBRD loaned about US$26 billion, which represented just a "fraction
of the $72 billion the IMF approved as a credit line to a single nation, Mexico."In
the early 2010s, the total of "capital investments in emerging markets from all
sources have topped $1 trillion annually". According to the Institute of
International Finance, in 2011, the "combined net investment of the World Bank
and other international development banks and agencies" was about $20 billion
in 2011.
According to a 2019 The Economist article, the IBRD is "more controversial" than
the International Development Association (IDA) lending arm. With its AAA credit
rating, the IBRD can "borrow money cheaply on the international financial
markets". Middle-income countries, like Brazil and China that currently borrow
from the IBRD, could "borrow in abundance from foreign investors" on their own.
Total assets $ 296,804
Africa
In fiscal 2020, the Bank approved $20.8 billion in lending to the Africa region for
156 operations, including $1.7 billion in IBRD commitments and $19.1 billion in
IDA commitments.
East Asia and Pasific
The World Bank approved $7.3 billion for 77 operations in the region in fiscal
2020, including $4.8 billion in IBRD commitments and $2.5 billion in IDA
commitments.
Europe and Cental Asia
In fiscal 2020, the World Bank approved $7.2 billion in lending to the region for 64
operations, including $5.7 billion in IBRD commitments and $1.5 billion in IDA
commitments.
Latin America and Caribbean
The World Bank approved $7.8 billion in lending to the region for 67 operations in
fiscal 2020, including $6.8 billion in IBRD commitments and $1.0 billion in IDA
commitments.
Middle East and North America
The World Bank approved $3.6 billion in lending to the region for 22 operations in
fiscal 2020, including $3.4 billion in IBRD commitments and $203 million in IDA
commitments. Another $103 million were provided for projects supporting the
West Bank and Gaza.
South Asia
The World Bank approved $11.7 billion in lending to the region for 61 operations
in fiscal 2020, including $5.6 billion in IBRD commitments and $6.1 billion in IDA
commitments.

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World Bank Group,

international organization affiliated with the United

Founded in 1944 at the UN Monetary and Financial Conference (commonly

The International Bank for Reconstruction and Development (IBRD),

The International Development Association (IDA),

The International Finance Corporation (IFC),

The Multilateral Investment Guarantee Agency (MIGA),

The International Centre for Settlement of Investment Dispute (ICSID

The International Bank for Reconstruction and Development (IBRD)

The International Bank for Reconstruction and Development (IBRD) is a global

 We provide a combination of financial resources, knowledge, and technical

 Our strategic advice helps governments reform to improve services,

 We partner with countries as challenges emerge and evolve, through

Advisory services in public debt and asset management help governments, official

East Asia and Pasific

Europe and Cental Asia

Latin America and Caribbean

Middle East and North America

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