ABSTRACT
Monetary co-operation has been one of the fields in which developing countries have increasingly made systematic efforts in order to promote their commercial and financial relations, and to permit a more rational use of their resources. This chapter examines two important types of monetary co-operation that have been implemented by developing countries through multilateral payments and clearing agreements; and multilateral credit arrangements for balance-of-payments support. The combination of clearing agrements and of credit facilities for halance-of-payments support to their member countries, has been effective as a way for promoting trade. The eligibility of transactions for channelling through the clearing arrangements determines the starting point of the payments liberalization process which certain groups of countries have agreed to implement. The funds or arrangements providing their members with financial facilities to cover part of their balance-of-payments deficits, have been co-operation devices increasingly used among the developing countries.
