International Financial Stability

International financial stability refers to a state where global financial markets and institutions operate smoothly, reducing the risk of crises that can affect countries worldwide. It involves managing risks like currency fluctuations, banking crises, or debt defaults so that countries can exchange goods, services, and investments confidently. Stable international finances support economic growth, job creation, and reduce the likelihood of sudden economic downturns that could harm people globally. Organizations like the International Monetary Fund work to promote this stability by monitoring financial systems, offering assistance, and encouraging policies that foster resilient and open financial markets.