International Monetary Fund (IMF)

ROLE AND FUNCTION OF IMF

Arun Mishra
9893686820
arunjimishra@gmail.com
 HISTORY
The International Monetary Fund was conceived
in July 1944 originally with 45 members and came
into existence in December 1945 when 29
countries signed the agreement.

IMF started to make service with IBRD in 1947.

The IMF works to improve the economies of its

member countries.

Its HQ is Washington, D.C.,

It is governed by almost 184 countries.

International Monetary Fund
IMF is the intergovernmental organization that oversees
the global financial system by following the
macroeconomic policies of its member countries, in
particular those with an impact on exchange rate and the
balance of payments.

It is an organization formed with a stated objective of

stabilizing international exchange rates and
facilitating development through the enforcement of
liberalizing economic policies on other countries as
a condition for loans, restructuring or aid.
International Monetary Fund
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.

Its headquarters are in Washington, United States.

Purposes of the IMF
o Promote international monetary cooperation.
o Expansion and balanced growth of international
trade.
o Promote exchange rate stability.

o The elimination of restrictions on the

international flow of capital.

o Make resources of the Fund available to

members
Purposes of the IMF
o Help establish multilateral system of payments and
eliminate foreign exchange restrictions.

o Shorten the duration and lessen the degree of

disequilibrium in international balances of payment.

o Foster economic growth and high levels of

employment.

o Temporary financial assistance to countries to help

the balance of payments adjustments.
ROLE OF IMF
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.

Focusing on its core macroeconomic and

financial areas of responsibility.

Working in a complementary fashion with

other institutions established.
FUNCTIONS OF IMF
Surveillance (like a doctor) Gathering
data and assessing economic policies of
countries.

Technical Assistance (like a teacher)

Strengthening human skills and
institutional capacity of countries.

Financial Assistance (like a banker)

Lending to countries to support reforms