Scribd
Upload
7 views5 pages

Speech - IMF Kuwait

The delegate of Kuwait advocates for the adoption of national currencies in international trade to reduce dependence on the US dollar and enhance regional economic cooperation. Kuwait emphasizes the importance of collaboration with the IMF to manage risks associated with currency volatility and to facilitate a stable transition. Additionally, Kuwait recognizes the potential of digital currencies to improve trade efficiency while addressing cybersecurity and financial stability concerns.

Uploaded by

Sidharth Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
7 views5 pages

Speech - IMF Kuwait

The delegate of Kuwait advocates for the adoption of national currencies in international trade to reduce dependence on the US dollar and enhance regional economic cooperation. Kuwait emphasizes the importance of collaboration with the IMF to manage risks associated with currency volatility and to facilitate a stable transition. Additionally, Kuwait recognizes the potential of digital currencies to improve trade efficiency while addressing cybersecurity and financial stability concerns.

Uploaded by

Sidharth Sharma
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 5

GSL

Honorable Chair and esteemed delegates,

Today, the delegate of Kuwait stands before you to discuss the adoption of national
currencies in international trade and its implications to Kuwait and the international
community. As many of you know, Kuwait has been reliant on oil as an export
commodity, and transactions are mostly conducted in US dollars. While this has
stabilized our economy, it has made our economy vulnerable to fluctuations in the
dollar.

Kuwait also recognizes benefits can be reaped in international trade by using


national currencies. This would enhance regional economic cooperation and reduce
our dependence on US dollars. For instance, trading with neighbors from the GCC
will be enhanced and strengthen our economic ties in this region by carrying out
trade in KWD (Kuwaiti Dinar) or other regional currencies.-

But we must be very careful in doing this transition. In global trade, the adoption of
national currencies itself is a big task to be undertaken with so many problems. We
need to mitigate the risk factors of currency volatility, market liquidity, and
international confidence in our currencies. Kuwait believes that collaboration is
utmost important with the IMF. The IMF can be of immense help to us in assessing
these risks and smoothing our way into a stable transition.

Kuwait will continue to engage positively on this issue with other countries while
discussing further bilateral agreements that will be authorized to use national
currencies on the backdrop of maintaining financial stability. We look forward to
setting up a more solid economic framework that will benefit Kuwait and our regional
partners.

So, in conclusion, the use of national currencies among nations in international trade
holds promise for greater economic independence and cooperation. Let us all join
forces towards creating a stronger and more sustainable trading environment for all
nations.

Thank you.
MODERATED CAUCUS

Honorable Chair, Esteemed delegates,

As the delegate of Kuwait. I would like to record that digital currencies are
increasingly becoming a part of our lives and enhancing global trade. Digital
currencies are making cross-border trade faster, more efficient, and more
transparent. It reduces transaction times and subsequently lowers costs, thus
enabling easier and cheaper access to the world market for Kuwaiti enterprises and
for Kuwait itself.

Digital currencies may, therefore, ease cross-border transactions with key trading
partners for Kuwait, which has an economy that is heavily dependent on energy
exports and international trade. It may benefit small and medium-sized businesses
most as it would provide them with a much more direct and less costly method of
engaging in international trade.

But along with all these advantages, comes the list of cons. Among the major risks,
cybersecurity risks besides a possible threat to stability in terms of financial risks are
the ones that must be managed carefully. Kuwait believes cooperation from the
world can be through a framework and regulation which will safely make them allow
digital currencies while putting the economy further safeguarded from risks.

In this respect, Kuwait is committed to identifying areas of digital currency that would
help improve trade and provide basic safeguards for maintaining financial security
and stability.

Thank you.
DRAFT RESOLUTION

International Monetary Fund (IMF) Committee


Agenda: The Adoption of National Currencies in Global Trade

Sponsor: Kuwait

Co-Sponsors: Saudi Arabia, India, Brazil, Egypt, Indonesia

The International Monetary Fund,

An acknowledgment of national currencies' strategic importance in promoting the


efficiency of trade and less dependency on existing global reserve currencies,

In acknowledgement of the strong and stable national currency, Kuwaiti Dinar,


along with its prospects for more general usage in regional and international
cooperation treaties,

An excessive dependence on a limited assortment of international reserve


currencies makes countries vulnerable to inflationary risks as well as the
fluctuations characteristic of developing nations,

Recalling Kuwait's dedication to financial and economic cooperation, as


evidenced by its participation in regional organizations and trade alliances,

It underlines the importance of sound infrastructure in finance, advanced


technology, and secure payment systems that guarantee trouble-free currency
trading in international markets,
Accepting that significant roles digital currencies and modern financial
instruments may play in enhancing the viability of national currencies in
international transactions have been appreciated,
1. Urges IMF member states, particularly in the Gulf region, to explore and
expand the use of national currencies, including the Kuwaiti Dinar, in bilateral
and multilateral trade agreements to foster economic stability and reduce
currency risk;

2. It supports an IMF-led task force that would structure a framework for using
national currencies in global trade, with a focus on:

o Establishing secure, transparent, and efficient currency exchange


mechanisms;
o Delivering technical assistance and capacity-building initiatives for developing
nations;

o Facilitating smooth exchange of currencies and trade financing through


collaboration among financial institutions using national currencies;

3. Encourages the development of regional financial platforms, particularly in the


Middle East, to facilitate cross-border trade, use of national currencies, and
promote regional financial integration;

4. Recommends that the IMF continue to monitor the stability of currency, so that
countries adopting national currencies in global trade ensure the maintenance
of strong monetary policies, which reduces the chances of inflation and
instability;

5. Call for increased collaboration between the IMF and central banks in
augmenting digital currency platforms and blockchain technologies, which can
facilitate safe, effective, and efficient use of national currencies in international
payments;

6. Proposes to review the existing IMF policies to make it incentivize and


accommodate a wider range of national currencies in international trade,
providing countries with alternative options that deviate from the dominant
reserve currencies.

You might also like