An Analysis of the Strategic Positioning of Financial Diplomacy in a Global Context

Abstract

The core of financial diplomacy is represented by how countries protect their financial goals, and being part of the process of regulating the world’s financial system, as well as enhancing or strengthening the widening scope of this role due to an ever-changing financial landscape. With changes to the international system of regulating the world’s financial markets, financial diplomacy has the mission of aligning/maintaining/controlling international rules for financial systems, stabilizing the global financial system, and enforcing/instituting restraints on international capital flows. Financial diplomacy is also a vital piece of creating regional and bilateral financial networks. By defining the strategic purpose of financial diplomacy, you can strengthen a country’s financial infrastructure while creating a more equitable and fair financial system; both of these are important for a country’s economic growth and development, and consistency across the globe for financial regulation and governance.