Nauru Comes to Be 189th Member of IMF and World Bank [ Current Affairs ]
A tiny South Pacific island nation in Pacific Ocean Republic of Nauru has joined the International Monetary Fund (IMF) and World Bank as the 189th member of i. e. Bretton-Woods institutions.
- In April 2014 Nauru had applied for membership in the Washington-based IMF and World Bank.
- Its preliminary subscription allowance for IMF will be of SDR 2 million or about $2.81 million.
- And after Tuvalu, It will be the second smallest member of the Fund.
Benefits to Nauru
- By joining the World Bank:
- The island country increases admission to financial support, technical support and special expertise to agreement with Pacific area issues, such as water and cleanliness and tragedy risk management among the danger of climate change and rising sea levels.
- By joining the IMF:
- Nauru can profit from the IMF’s crisis lender’s guidance on handling government finances and monetary policy.
- The last country to join the World Bank and IMF as 188th member was South Sudan in April 2012 before Nauru.
About Republic of Nauru
- Nauru is a miniature island country in Micronesia, northeast of Australia.
- In terms of both population and area, Nauru is the tiniest independent state in the world after the Vatican City; it has population of about 10, 500 and a land area of about 8 square miles.
- The Australian dollar is currency or legal tender of Nauru.
- In 1996 it had joined United Nations (UN) as the world’s smallest independent republic.
- Published on: April 14, 2016