Proceedings of The 4th International Academic Conference on Management and Economics
Year: 2021
DOI:
International Trade Sattlement in Emerging Economies
Jahan Zaib Mughal
ABSTRACT:
This study encompasses the growing problems for sattlement against International Trade which is increasing by the passage of time between the countries due to rise in quantity and in terms of value which has catalized by the diminishing trend of value of Domestic currencies.
Export oriented countries are in comfort zone because of favourable balance of Trade but importing countries are always struggling for matching their dificite through sources from International Doners Agencies and their own Foreign Exchange Sources.
Asian countries size of international Trade has increased to 3.43 Billion US $ daily. Out of which these Central and South Asian Countries are the main contributor. These economies need to build a Economic Structure where , they can address following points to sustain their GDP growth and continue Economic Revivals. To minimise cut troat compitition among the coutries need to build Economic Block to manage their Regional Trade and sattlements thereof.
Decrease cost of Imports through reduction of Freight cost, Time, Transfer of Technology in their Home Countries,engaging Human Resources of Country to increase disposable In come.
*Increase GDP by engaging the resources which give comparative advantages to the economy by virtue of available Natural resources, Geo Positioning, Market Forces, size of Economic base.
Financial Alignment of economy through reducing the factors which causes financial straints on the settlement of International Trades,Foreign Exchange Reserves.
This study focuses on the Mechanics of settlements of International Balance of Trade through devicing TSA (TRADE SATTLEMENT ACCOUNTS)
These Accounts need to be maintained in Currency which is for settlement purpose and remains in Books of Accounts. It does not Circulate in currency Note form.
Contributory Parity is established through a comprehensive Economic indicators mechanism to measure the economic strength of country and is always available in Real Time Settlements between the Member Countries.
The Role of Central Banks of Member Countries are manifested and UNIT price of TSA may be controlled/ managed on daily basis through Rate Control Committee of member countries. This currency may never be swaped against other currencies of the world.
keywords: International Trade settlement.