International Monetary Fund (IMF): In this post, we will discuss about the International Monetary Fund (IMF). When was IMF established, the purpose of IMF and various other facts related to IMF
International Monetary Fund (IMF)
IMF is an organisation/group of 189 nations that work together to:
- to foster global monetary cooperation,
- secure financial stability,
- facilitate international trade,
- promote high employment and sustainable economic growth, and
- reduce poverty around the world.
Member countries of IMF: There are 189 member countries of IMF.
IMF was formed in 1945.
Headquarters of IMF: Washington, D.C., United States
Managing Director of IMF: Christine Lagarde
Major objective of the International Monetary Fund (IMF)
The main objective of the International Monetary Fund (IMF) is to ensure the stability of the international monetary system. IMF achieves this in three ways:
- Economic Surveillance – Keeping track of the global economy and the economies of member countries. The IMF highlights possible risks to stability and advises on needed policy adjustments of its member country.
- Lending– Lending to countries with balance of payments difficulties. The IMF provides loans to member countries experiencing actual or potential balance of payments problems to help them rebuild their international reserves
- Capacity Development– Giving practical help to members. The IMF works with governments around the world to modernize their economic policies and institutions, and train their people.
Special Drawing Rights (SDR)– It was created by IMF in 1969 and these are supplementary foreign-exchange reserve assets defined and maintained by the International Monetary Fund.
Important Reports by IMF
- Global Financial Stability Report
- World Economic Outlook
Difference between the World Bank Group and the IMF?
Both the organisation i.e World Bank and IMF were founded at the Bretton Woods conference in 1944, and the two institutions have complementary missions. The major differences between the functions and objectives of the World Bank and IMF are mentioned below.
It with developing countries to reduce poverty and increase shared prosperity
It works with the countries to serves to stabilize the international monetary system and acts as a monitor of the world’s currencies.
provides financing, policy advice, and technical assistance to governments, and also focuses on strengthening the private sector in developing countries.
keeps track of the economy globally and in member countries, lends to countries with balance of payments difficulties, and gives practical help to members.
It has 5 institution
No such sub institutions
- For any country to become a member of the World Bank, it must first become a member of the IMF.