25-08-2017, 09:32 PM
The International Monetary fund
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INTRODUCTION
IMF is a forum of national economic policies,
international monetary and financial systems,
Which involves active dialogue with each member
Country.
When there is a country where has a serious finance problem, other countries loan the money for the poor country.IMF is a kind of association among the countries to prepare the situation when the nation bank of country is bankrupted.
IMF is an administrative unit that is international in nature and whose objective is to regulate and administer the financial system of the world.
HISTORY OF IMF
The International Monetary Fund Was created in 1944, at the Bretton Woods conference to prevent the kinds of chain reaction in the economic system that caused world currencies to collapse like in the Great Depression of the 1930s.
Bretton wood agreement was contracted in 1944 and
IMF was established in December ,1945.
IMF started to make service with IBRD (international bank of reconstruction and development) in 1947.
The IMF was created to support orderly international currency exchanges and to help nations having balance of payment problems through short term loans of cash.
ABOUT IMF
IMF headquarters is in Washington D.C , U.S.A
Five largest shareholders are United States, Japan, Germany, France, United Kingdom.
China, Russia, and Saudi Arabia have their own seats on the Board.
16 other Executive Directors are elected for two year terms by groups of countries, known as “Constituencies”.
Total quotas of $312 billion; outstanding loans of $71 billion to 82 countries (According to the report of August 31, 2005).
The International Monetary Fund (IMF) is an organization of 188 countries.
PURPOSES OF IMF
IMF promote international monetary cooperation .
expansion and balanced growth of international trade.
IMF promote exchange rate stability .
help establish multilateral system of payments and eliminate foreign exchange restrictions.
IMF make resources of the Fund available to members.
Foster economic growth and high levels of employment.
IMF can make the price of foreign money to be safe.
IMF can solve the problem of countries that doesn’t want to allow the
foreign money to make their currency’s value higher.
ROLE OF IMF
Focusing on its core macroeconomic and financial areas of responsibility.
Working in a complementary fashion with other institutions established.
Collection and allocation of reserves.
Rendering advice to member countries on their international monetary affairs.
Promoting research in various areas of international economics and monetary economics.
Providing a forum for discussion and consultation among member countries.
Being in the center of competence.
conclusion
The IMF works to foster global growth and economic stability. It provides policy advice and financing to members in economic difficulties and also works with developing nations to help them achieve macroeconomic stability and reduce poverty.