What is International Monetary Fund?

International Monetary Fund is an international organisation which aims to promote international monetary cooperation. IMF facilitate the expansion and balanced growth of international trade. It romote exchange stability and also assist in the establishment of a multilateral system of payments and make resources available (with adequate safeguards) to members experiencing balance-of-payments difficulties. This topic is very important  from exam point of view and also in interview, questions from this topic are asked.

History Of IMF 

On July 1944, in United Nations Bretton woods conference, the IMF was conceived in New Hampshire, United States. Basically, to avoid repeating the competitive currency devaluations that contributed to the Great Depression of the 1930s, the 44 countries in attendance sought to build a framework for international economic cooperation. The primary mission of the IMF’s  is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries and their citizens to transact with each other.

Fun Facts

• Membership: There are total 189 countries
• Headquarters: It is in Washington, D.C.
• Executive Board: There are 24 Directors each representing a single country or groups of countries
• Staff:  There are approximately 2,700 from 150 countries
• Total quotas: The SDR is 477 billion (US$661 billion)
• Borrowed resources envelope: The SDR is 500 billion (US$693 billion)
• Committed amounts under current lending arrangements: The SDR is 152 billion (US$210 billion), out of which SDR 96 billion (US$133 billion) has not been drawn.
• The largest borrowers: It is Argentina, Ukraine, Greece, Egypt
• The largest precautionary loans: It is Mexico, Colombia, Morocco
• Surveillance consultations: There are 132 consultations in 2014, 124 in 2015 and 132 in 2016.
• Capacity development spending: It is US$332 million in FY2016, over a quarter of the IMF’s total budget

Current Affairs: For All Banking Exams

Features of IMF

It is the responsibility of IMF  to maintain stability and prevent crises in the international monetary system and to monitors member country policies as well as national, regional, and global economic and financial developments through a formal system known as surveillance.

IMF also Provides loans to member countries that are experiencing actual or potential balance-of-payments problems.

It is the responsibility of the IMF to provide technical assistance and training to help member countries build better economic institutions and strengthen related human capacities.

The IMF issues an international reserve asset known as Special Drawing Rights , or SDRs, that can supplement the official reserves of member countries.

The IMF holds the  accountability to its member country governments.