From a bank’s perspective there is little difference between a negotiable certificate of deposit (NCD) and a time deposit. The big difference to the holder of NCDs is that they can be traded in a secondar y market. NCDs are also generally relatively longer term than time deposits but shorter term than bonds. They may be issued in the local currency or a foreign currency, usually the US$. In the latter case proceeds may be used to finance foreign currency assets or swapped back into the local currency.
Posts Tagged ‘currency’
Short-term Finance
Monday, September 28th, 2009The World Bank
Friday, September 4th, 2009The World Bank was established as the International Bank for Reconstruction and Development (IBRD). The latter, somewhat cumbersome, title provides a more accurate description of the bank’s role. The IMF has more of the functions and responsibilities one would expect from a world central bank.
The World Bank was set up to address long-term development issues and to reduce global poverty. It provides funding for basic infrastructure projects to developing countries. It is also mandated to facilitate reforms to reduce global poverty. This is clearly well intentioned but the evidence shows that it has had limited success. Its effor ts in sub-Sahara Africa have had few positive results, for example.
The gap in terms of wealth between developed and many developing economies has widened. The blame for this should not be laid at the feet of the World Bank, however. Its resources are a small fraction of private investment flows and subsidies on agricultural products and other commodities by developed countries have taken their toll on incomes in developing countries.