Reporter : Angielyn V. Montibon
Surveillance
Topic: THE INTERNATIONAL MONETARY
FUND
The International Monetary Fund (IMF) is an
organization of 189 countries, working to:
 foster global monetary cooperation
 secure financial stability
 facilitate international trade
 promote high employment
 sustainable economic growth
 and reduce poverty around the world
HISTORY OF IMF
In 1944, representatives of 44 nations met in Bretton
Woods, New Hampshire, to draw up a plan for the post-
World War II economic order. Their goal was to avoid a
repetition of the destructive policies that could spark
another conflict.
The framers of the new Bretton Woods monetary regime
hoped to promote world trade, investment, and economic
growth by maintaining convertible currencies at stable
exchange rates
The IMF functions in three main areas:
1.Overseeing the economies of member countries
2.Lending to countries with balance of payments issues
3.Helping member countries modernize their economies
Why is global economic stability important?
 Promoting economic stability is partly a matter
of avoiding economic and financial crises, large
swings in economic activity, high inflation, and
excessive volatility in foreign exchange and
financial markets
 A dynamic market economy necessarily
involves some degree of volatility, as well as
gradual structural change.
 Economic and financial stability is both a
national and a multilateral concern. As recent
financial crises have shown, economies have
become more interconnected
How does the IMF help?
The IMF helps countries implement sound
and appropriate policies through its key
functions of:
1.
2. Technical assistance
3. Lending
SURVEILANCE
Every country that joins the IMF accepts the obligation to
subject its economic and financial policies to the scrutiny
of the international community. The IMF’s mandate is to
oversee the international monetary system and monitor
economic and financial developments in and the policies
of its 189 member countries. This process, known as
surveillance, takes place at the global level and in
individual countries and regions.
Country surveillance is an ongoing process that
culminates in regular (usually annual) comprehensive
consultations with individual member countries, with
discussions in between as needed
Regional surveillance involves examination by the IMF
of policies pursued under currency unions—including the
euro area, the West African Economic and Monetary
Union, the Central African Economic and Monetary
Community, and the Eastern Caribbean Currency Union
Global surveillance entails reviews by the IMF's
Executive Board of global economic trends and
developments.
TECHNICAL ASSISTANCE
is one of the Fund’s three main pillars of activity, and is
considered by the Fund to be complementary to its other
core functions of surveillance and lending in order to
improve the overall implementation of economic policies
LENDING
Even the best economic policies cannot completely
eradicate instability or avert crises. If a member country
faces a balance of payment crisis, the IMF can provide
financial assistance to support policy programs that will
correct underlying macroeconomic problems, limit
disruption to both the domestic and the global economy,
and help restore confidence, stability, and growth.
Resources:
https://www.investopedia.com/terms/i/imf.asp
https://www.britannica.com/topic/International-Monetary-
Fund
https://www.bbc.com/news/business-50069765