Article title The Legal Status and Role of an International Financial Organization as an Entity of Foreign Exchange Legal Relations in the Globalization Process
Authors

Ph. D., Associate Professor, Associate Professor (Docent) of the International and Europe Law Department Kyiv National Economic University named after Vadym Hetman (Kyiv, Ukraine) ORCID ID: https://orcid.org/0000-0001-6657-7214 Researcher ID: http://www.researcherid.com/rid/L-5466-2018 olga.sheremeteva@list.ru

 

Name of magazine Legal journal «Law of Ukraine» (Ukrainian version)
Issue 2/2020
Сторінки [244-259]
DOI https://doi.org/10.33498/louu-2020-02-244
Annotation

The globalization process is underway in all areas of life of the world community in general and in the area of foreign exchange relations in particular. However, the legal status and role of an international financial organization as an entity of foreign exchange legal relations, especially in the globalization context, has been insufficiently explored.

The purpose of the article is to characterize the legal status and role of an international financial organization as an entity of foreign exchange legal relations, especially with regard to globalization processes, with a view to avoiding gaps and misunderstandings in science and in law application practice.

The article examines peculiar features of the legal status of an international financial organization as an entity of foreign exchange legal relations in the globalization context. In particular, the peculiarities of legal personality of an international financial organization, and the privileges and immunities granted to these international financial institutions. The author also elaborates on some current problematic aspects of Ukraine’s cooperation with the International Monetary Fund.

Summarizing the presented material, the author notes that the treaty-making capacity of international financial organizations differs significantly from the treaty-making capacity of States, since international financial organizations are endowed with legal personality derived from legal personality of the States which they are established by. This peculiarity of the legal status of international financial organizations should be borne in mind when cooperating with them. At the same time, international financial organizations are endowed with privileges and immunities typical for international organizations, with certain specifics. Furthermore, it is in the nature of international financial organizations to a certain extent to increase the scope of legal personality enshrined in the constituent documents of these organizations, provided that member States do not object thereto, and the scope of their legal personality may also comprise “quasi-legal” and “quasi-judicial” powers. In general, it can be noted that international financial organizations, depending on their legal personality, play a vital role in the globalization processes currently underway in the world. Thus, they have contributed to the emergence of modern forms of capital export and facilitated the increase of its volumes; they played a part in the ushering of foreign exchange and financial resources to the sectors crucial for social development, at the same time minimizing the risks of cross-border capital movement; furthermore, they have a significant role to play in the process of regulation of payment balances of States, etc. Finally, the author emphasizes that there is no clear, generally accepted and generally recognized name for the term “international financial organization” in science and in Ukrainian legislation. In this regard, the author believes that the term “international foreign exchange organization” would be most consistent with the purpose, essence and legal status of these international financial structures, since this term reflects the main “weight class” in which these organizations function, i.e., currency is the exclusive mediator of all of their financial transactions.

 

Keywords international financial organization; international foreign exchange organization; legal status; foreign exchange legal relations; entity of foreign exchange legal relations; globalization process; legal personality of international financial organization; privileges and immunities of international financial organization
References

Bibliography

Authored books

1. Al’tshuler A, Mezhdunarodnoe valjutnoe pravo [International Monetary Law] (Mezhdunar otnoshenija 1984) (in Russian).

2. Dziubliuk O, Valiutna polityka: pidruchnyk [Monetary Policy: Textbook] (Znannia 2007) (in Ukrainian).

3. Riazanova N ta Haponiuk M ta Maksymenko A, Mizhnarodni finansovi orhanizatsii: pidruchnyk [International Financial Organizations: Textbook] (KNEU 2010) (in Ukrainian).

4. Sheremetieva O, Rehuliuvannia ta upravlinnia valiutnymy ryzykamy: pravovyi aspekt [Regulation and Management of Foreign Exchange Risks: Legal Aspect] (KNEU 2017) (in Ukrainian).

5. Shumilov V, Mezhdunarodnoe jekonomicheskoe pravo [International Economic Law], kn 1 (Deka 2002) (in Russian).

 

Edited books

6. Herdegen M, Mizhnarodne pravo [International Law] (per z nim, K.I.S. 2011) (in Ukrainian). 7. Luk’janenko D i Poruchnik A i Kolesov V (red), Global’noe jekonomicheskoe razvitie: tendencii, asimmetrii, regulirovanie [Global Economic Development: Trends, Asymmetries, Regulation] (KNEU 2013) (in Russian).

8. Voronova L (vidp red), Finansove pravo: pidruchnyk [Financial Law: Textbook] (Konsum 1999) (in Ukrainian).

9. Zavalna Zh ta Starynskyi M, Valiutne pravo Ukrainy: navchalnyi posibnyk [Monetary Law of Ukraine: Study Guide] (Universytetska knyha 2005) (in Ukrainian).