is an organization of 186 countries ,working to
foster global monetary cooperation , secure
financial stability ,facilitate international trade
,promote high employment and sustainable
economic growth and reduce poverty” .
The IMF is the most detailed attempt to organize
the conduct of international monetary affairs.
The International Monetary Fund was created in
July 1944, originally with 45 members, with a goal
to stabilize exchange rates and assist the
reconstruction of the world's international
payment system. Countries contributed to a pool
which could be borrowed from, on a temporary
basis, by countries with payment imbalances.
Headquarters in Washington D.C.
International Monetary Fund (IMF) Managing
Director Dominique Strauss-Kahn (R) briefs
journalists on the outcomes of the
International Financial Monetary and Financial
Committee meeting with Egyptian Finance
Minister and International Monetary and
Financial Committee (IMFC) Chairman Youssef
Boutros-Ghali (M), and IMF First Deputy
Managing Director John Lipsky (L); April 25,
2009 at IMF Headquarters in Washington, DC.
Board of Governors
IMF Managing Directors
First Deputy Managing Dir
There are two types of members:
ORIGINAL MEMBERS: All those countries whose
representatives took part in BRETTONWOODS
CONFERENCE and who agreed to be the members
of the fund prior to 31st December,1945.
ORDINARY MEMBERS: All those who became its
*BANK has the authority to suspend any member and
similarly every member is free to resign.
AND THEIR FIXATION: The fund
has general account based on quotas
allocated to its members .when a country
joins the fund, it is assigned a quota that
governs the size of its subscription, its voting
power and its drawing rights .
FUND BORROWING: It was in force from
October 1962 to December 1998 .At that
time its total borrowing was SDR 17 billion .
INTERNATIONAL MONETARY CO
TO FACILITATE EXPANSION AND
BALANCED GROWTH OF
TO PROMOTE EXCHANGE STABILITY
GENERATING HIGHER EMPLOYMENT
ABOLITION OF EXCHANGE
THE RATE OF EXCHANGE
BY EVERY COUNTRY
CENTRAL BANK’S BANK
AND TECHNICAL ASSISTANCE
INTERNATIONAL MONETARY CO-OPERATION
CHECKING COMPETITIVE DEPRECIATION
INCREASE IN CAPITAL RESOURCES
EXPANSION OF TRADE
GURANTEE AGAINST COMPETITIVE DEVALUATION
Many observers comment on the fact that the IMF has a
”one size fits all” mentality, that whatever the situation the
IMF prescribes basically the same set of policies.
IMF does not adequately monitor the impact of its
decisions on the poor.
Some of U.S. critics say, IMF is an incredibly wasteful
organization that takes valuable funds and pours it down the
drain of developing economies whose leaders become
fabulously rich off the money without any intention of ever
helping out anyone.
the IMF has no effective authority over the domestic
economic policies of its members.
FINANCIAL ASSISTANCE FROM THE FUND
loan given by IMF to INDIA
IN MILLION $
HELPS IN FOREIGN EXCHANGE CRISIS
FREEDOM FROM STERLING
MEMBERSHIP OF THE WORLD BANK
The current relationship between IMF
The relationship between the IMF and India has grown strong
over the years. In fact, the country has turned into a creditor to
the IMF. India and IMF must continue to boost their relationship
this way, as it will prove to be advantageous for both.
The International Monetary Fund, or IMF, predicted lower growth
in India and economic contractions in the US, Japan and euro
region next year, calling for further interest rate cuts and fiscal
India recorded a GDP growth of 9.8% in 2006 and 9.3% in 2007.
Its estimate for India’s growth in 2009 is now 6.3%.
An economist said India could grow faster than IMF’s
estimate. “Growth next year will definitely be slower than this
year, but it may still touch 7%. New oil refineries coming up
next year will also boost GDP (gross domestic product). I agree
with IMF that growth momentum will slow further, but it may
pick up towards the end of next year,” said Dharmakirti Joshi,
principal economist with credit rating agency Crisil Ltd.
The IMF’s primary purpose is to safeguard the stability of
the international monetary system—the system of exchange
rates and international payments that enables countries (and
their citizens) to buy goods and services from each other. This
is essential for achieving sustainable economic growth and
raising living standards.
providing advice to members on adopting policies that can
help them prevent or resolve a financial crisis, achieve
macroeconomic stability, accelerate economic growth, and
making financing temporarily available to member
countries to help them address balance of payments
problems—that is, when they find themselves short of
foreign exchange because their payments to other