BY EDWARD THEOPHILUS

The international financial system is associated with trade and non-trade transactions. The relationship between nations has many weaknesses that are not understood by many academics and practitioners who are operating in the system. It has communicated that seems to be jargon for average people.  A major weakness of the international financial system has less concern for developing countries when it operates in deviated environments, as it is complicated by dynamism. It is vulnerable to changes in contrasting environments by the actions of major economies neglecting developing countries.

The spending of major economies relates to massive war spending affecting developing economies, despite the Keynesian theory that budgetary spending would lead to an increase in employment opportunities. The volume or the rate of association of transactions with the system are relegated to import and export activities and non-merchant transactions make discomforts for poor nations. For example, the foreign value of the Sri Lanka rupee has systematically increased after the support of the IMF, and the liberalization of imports or removing the restriction of import items might kill the advantage gained by Sri Lankan policy considerations on liberalization of imports as it was after 1978. If Sri Lanka wants to maintain a reasonably higher value of the rupee and build a higher volume of foreign currency reserves, import spending needs to restrict, and export income from merchandise and services such as tourism should be increased. This cannot be done overnight. Many developed countries faced various economic hardships and advantages during the past century.

This situation (economics) has not been understood by poor countries and rich countries. Rich countries want to push poor countries to import from them. The governor of the Central Bank of Brazil stated that an electronic determination would adjust the system. Those are mere talks and the reality might be different.  

De-dollarization also was in the mind of many nations during the past ten years because fluctuation and the value changes of the US dollar have negatively influenced developing countries. Other hard currencies, such as French Franc and Sterling Pound, and others also have been creating difficulties in developing countries. This is the complicated problem that the international financial system has failed to solve during the past seventy years.  

The trade-related transactions between nations relate to many points in the operation as they were concerned only with the price, however, many factors are not related to the price and non-price related factors such as the quality of goods and services that should have been contemplated by the countries associated with the international financial system.  This situation should have been addressed by major partners of the system to give justice to poor nations during the past several decades, and the expected justice has not come to light in the system, it may have been the selfish attitudes of developed nations. It is a vital point that needs to be evaluated by developing and developed countries sitting together, but large economies were not concerned with the issues of poor countries. The political system in developed countries is structured to give more to the rich and disregard the poor.

Humans are not equal in the environment, anyhow, humans cannot ignore the environment like animals. Humans are living in a complicated environment with economically diverse countries, sometimes, it could observe some rich people are behaving extremely than animals.  Developing countries have less power or condition to provide basic needs for poor people. Did the international financial system concerned with such people is the question that needs to be evaluated and increasing support for de-dollarization? The requirement has not been willing to discuss by developed nations. When people saw this in the international financial environment, this injustice, powerful nations willingly ignored and the international financial system did not concern to make attention to this injustice. This was the most regrettable situation that people observed during the past seventy years. What is needed in this situation is to develop policies to give justice to the poor rather than thinking about developing strategies to react against the changing environment of the globe.    

Many guys are playing games in the modern world with technology and modernization encourages to develop of policies for the benefits of rich. Why is the world aligning with rich, ignoring poor is a complex question to be asked?    People had a strong association with international trade practices in the 1930s.  Some countries were blessed with the opportunities to convert their own currency units to hard currencies in the world. Although many countries were not willing highlight this factor, the truth was it and such countries hiding the truth in the modern uncertainty attempt to be saints.

The currency units of poor countries and developing nations have appearance to the negative consequences of the world, whilst currency units of many Western countries were becoming hard currencies after the operation of the International Monetary Fund, such countries ignored poor countries and openly talked to the world like real saviour of the world.  The circumstance was an unreasonable nature of the international Financial System. Why and how is this situation unreasonable situation created in the modern world?  That might be a complicated question, however, it considers the ability of the currency units of developing countries and the trade power of the giant partners in the Briton-wood system who disregarded the cry of poor countries. No analyst commented on the point in the past and it seemed the disinterest of rich countries talking about the issues of poor countries. 

When America became a major country for international trade activities in the 20^th century, the American dollar became the strong currency unit despite many issues in the world. Resulting the use of the American dollar for international trade settlements, poor countries faced enormous disadvantages and should have to earn American dollars to buy their essential requirements and the trade monopoly in rich countries prevented the possibility of poor countries to earn American dollars. What was the answer to the Briton-wood system, except providing credit facilities relegating poor countries further hardships?   

This point also needed consideration by the international financial system. How this situation was created is a vital question to investigate despite many answers given by the experts of the IMF. Although it was needed to investigate the injustice that appeared in the international financial system, and the IMF attempted to wash its hands by providing big credit facilities to China and India, it further helped to IMF to maintain its highly paid staff and show the world that the international financial system is reasonably managed by the IMF. It is also a vital point why experts in developed countries disregarded the analysis of the negative influence of the international financial management system, considering the impact of contradictory reforms on developing nations.  

The other significant point associated with the prominence of the American dollar was its association with the gold standard, which means the keeping American dollar is like collecting gold because when a country returns, American dollars, America should have given gold, reducing its gold reserves. This was a vital point to change the status of the US dollar  and was also a challenge to continuing the status of the US dollar. The decision was taken by the USA on the advice of American consultants, in this situation the USA did not consult poor countries and the decision was taken alone if the international financial system was operating with the participation of many countries, why the USA took decision alone even without consulting other major countries which were partners in the International Financial System. The decision may have disadvantaged friendly countries too.

When developing international finance policies, Britain had many colonies under its administration and wanted to give the leadership for international financial reforms, but the use of the proposed BANCOR and the proposal was disregarded by interested nations the USA, why it incurred is difficult to assume, the internationally usable currency unit that could not be influenced by any country in the world was a reasonable justice to developing nations and heavyweights of the international financial system disregarded such a positive move. The American dollar unit became a priority. That was an obvious example, how did the US dollar become a strong currency unit in the world? 

The Briton-wood Agreement supported the US dollar to become a strong currency unit, the international monetary fund, which originated after the Briton-wood Agreement failed to make justice for many countries and it was further pushing poor countries into debt traps. Many countries during the past three decades wanted to change the leadership of the US dollar, and now the de-dollarization effort could be regarded as the visible reason to prioritize regional currency units.

Many people in the world have hope that BRICS will change to a new currency unit without basic support from any country to operate in the world. The effort of the De-dollarization movement must not destroy the existing international financial system.  The most important effort is to give reasonable and acceptable justice to poor and developing countries.

My idea is the currency unit must not link to a specific country and it should freely operate and should be a way of justice brought to developing and poor countries.