aims to develop and expand intra-Organisation of Islamic Cooperation trade.
Since its inception in 1395H (1975G), the aim of the Islamic Development Bank (IDB) has been to improve the lives of ordinary people across the Islamic world by raising economic standards and increasing prosperity within the member countries of the Organisation of Islamic Cooperation (OIC, formerly the Organisation of the Islamic Conference). IDB recognized that this goal could be achieved by advancing trade within the Islamic world. The development of trade between OIC member countries is fundamental to this process.
The first formal proposal was made by the Custodian of the Two Holy Mosques during the 10th OIC Summit held in Putrajaya, Malaysia in 1424H (2003G) and supported the following year by the United Arab Emirates at an IDB Board of Governors Meeting in Iran. The ITFC was mandated to streamline and consolidate operations within the IDB that had been carried out through multiple programs under the Bank’s Trade Finance and Promotion Department (TFPD).
A substantial amount of the trade finance activities was carried out through what was then referred to as the Import Trade Financing Operations Program (ITFO); which was commenced soon after the establishment of IDB, in 1977G, to finance the import financing needs of the member countries. In 1987G, the Export Financing Scheme (EFS) was established to complement the ITFO and help promote exports of the member countries.
In 1998, IDB took on management of another trade finance program established in cooperation with the Arab Bank for Economic Development in Africa (BADEA), to finance the exports of Arab League member countries to non-Arab League member countries of the African Union. On the other hand, several entities in the IDB Group such as the Islamic Bank’s Portfolio for Investment & Development (IBP), the Unit Investment Fund (UIF), the Islamic Corporation for the Development of the Private Sector (ICD) and the Awqaf Properties Investment Fund (APIF) were also engaged in trade finance activities. All intra-trade finance programs operational within the IDB were to be incorporated into the proposed corporation.
UN wants new global currency
The dollar should be replaced with a global currency, the United Nations has said, proposing the biggest overhaul of the world's monetary system since the Second World War.
In a radical report, the UN Conference on Trade and Development (UNCTAD) has said the system of currencies and capital rules which binds the world economy is not working properly, and was largely responsible for the financial and economic crises.
It added that the present system, under which the dollar acts as the world's reserve currency , should be subject to a wholesale reconsideration