IMF stands for International Monetary Fund and is an international organisation established on 27 December 1945. It promotes global economic growth, monetary cooperation, financial stability, international trade and reduces poverty. The IMF is headed by a board of governors, each representing one of the organisation’s member countries. It is headquartered in Washington, DC and has 190 member countries. Each member country has its representatives in the IMF’s executive board in proportion to its economic importance.
IMF: International Monetary Fund
The IMF was initially placed as a part of the Bretton Woods System Exchange Agreement in 1944. During the Great Depression, countries increasingly increased barriers to trade to repair their failing economies. This led to the devaluation of national currencies and a decline in world trade. This decline in international monetary cooperation created a need for monitoring. Representatives of 45 governments in the United States met at the Bretton Woods Conference at the Mount Washington Hotel in Bretton Woods, New Hampshire, to discuss post-war international economic cooperation and a framework for rebuilding Europe.
Today IMF is functioning in additional than 190 countries (189 UN countries and Kosovo). It works with global economic growth, monetary cooperation, financial stability, international trade and reduces poverty.
|IMF||International Monetary Fund|
|Formation||27 December 1945|
|Parent Organization||United Nations (UN)|
|Main Organ||Board of Governors|
|Managing Director||Kristalina Georgieva|
Main Objective of IMF
The main objective of the IMF is to create a stable international monetary system. It’s a stable exchange rate and international payments system so that countries can transact with each other. It achieves this in three ways:
- Keeps track of the global economies and the economies of member countries
- Lending to countries facing the balance of payments issues
- Providing practical help to members
Its mandate was updated in 2012 to include all issues related to the macroeconomic and financial sector and impact global stability.
Main Function of IMF
The main function of the IMF are as follow:
- Exchange Stability
- BOP Disequilibrium
- Determination of Par Value
- Stabilize Economies
- Balance the Demand and Supply of Currencies
- Maintain Liquidity
- Technical Assistance
Q. What is Full form of IMF?
Ans. International Monetary Fund (IMF).
Q. How many countries are in the International Monetary Fund?
Ans. There are 190 Countries.
Q. Who is the head of the IMF?
Ans. Kristalina Georgieva is the 12th Managing Director of the International Monetary Fund.