Uni. Ref Book –page Nos – 123/136(m3)

Inter na ti onal monetar y fund (IMF) Uni. Ref Book –Page nos – 123/136(M3)

IMF 

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International monetary institution established by different countries after World War II. WW – prices. Profits, share prices, production, employment, income of leading countries fell very low. affected the economies of the world. World wide depression Therefore, the monetary authorities of the world felt the need for international co-operation to establish international monetary stability.

IMF 

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A conference of 44 major countries was held at Bretton Woods in July 1944 . The result was the establishment of IMF and International Bank for Reconstruction and Development (IBRD) These two institutions are called “Bretton Woods Twins”

IMF 

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Came to existence in December 1945 and started functioning in March 1947. Autonomous institution affiliated to UNO and functioning from Washington. Started with 30 countries and the current strength is more than 150. The resources of the IMF are subscribed by the members and subscription quota of each member is based on its national income

OBJ ECTI VES    

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To solve international monetary problems. Balanced growth of international trade Employment growth and income growth Development of productive resources odf all member countries To promote exchange stability To give confidence to members that resources are available to them Lesson the degree of disequilibrium in International balance of payments.

FUN CTI ON S   

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It acts as a short term credit institution Orderly adjustments of exchange rate It is a reservoir of currencies of all member nations, who can borrow the currency of other nations It grants loans only for financing current transactions and not capital transactions Provides machinery for international consultation

Org aniza tio n of I MF 

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Management of the fund is under the control of two bodies. Board of Governors Board of Executive Directors

Org aniza tio n of I MF 

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The board of Governors has the responsibility of formulating the general policies of the fund Consists of one Governor and an alternate Governor from each member country. The board of executive directors controls the day to day activities of the fund. It consists of 22 directors, 6 of these are appointed by the members having the largest quotas, namely US, UK, West Germany, France, Japan and Saudi Arabia.

Achievements Provision of credit – beneficial for developing countries  Exchange stability  Expansion of world trade  Machinery for consultation 