ALL YOU NEED TO KNOW ABOUT THE IMF. SIMPLE.CRISP.CONSISED

1. Prepared & Submitted by:
AAYUSH KEJRIWAL
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2. Formed in 1945
Largest public lender of funds in the world.
Based in Washington D.C
Run by 189 member countries, represented
by 24 Executive Directors.
Except Cuba, Andorra, Liechtenstein, Monaco
and North Korea which are not members.
MISSION:
"to foster global monetary cooperation,
secure financial stability, facilitate
international trade, promote high
employment and sustainable economic
growth, and reduce poverty around the
world”
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3. HISTORY
•Part of the Bretton Woods agreement.
•Encourage International Financial
Cooperation
•The IMF also acted as a gatekeeper.
•Re-establish Europe.
•Bring stability in Monetary Market.
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4. KEY ACTIVITIES
Surveillance
Capacity Building
Lending
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5. ROLES OF IMF
IMF brings Stability in Exchange rate Development of international trade
IMF is strict on multiple exchange ratesIMF’s Elaborate lending operations
IMF role in Currency convertibilityIMF role in Consultation and Guidance
IMF is a Boon to developing countries
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6. FUNCTIONS
Survey Global Conditions
Advise Member Countries.
Provide Technical Assistance and
Short-term Loans.
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7. TOOLS of
Financial support
Structural Adjustment Policies
Stand-by Agreement
Extended Fund Facility (EFF)
Poverty Reduction and Growth Facility (PRGF)
Technical assistance to transitional economies
Emergency Funds to Collapsed Economies
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8. THE IMF CHEIF
Christine Lagarde: French lawyer and politician who was the
first woman to serve as France’s finance minister (2007–11).
PROFILE:
• Graduated (1974) from the prestigious Holton-Arms girls’ college-preparatory school in
Bethesda, Maryland, USA.
• Studied at the Law School of the University of Paris ,also specialized in Labour Law.
• Master’s degree in English.
•In 1981 Lagarde joined the international law firm Baker & McKenzie in Paris.
•In June 2005, she became Trade Minister of France, and in 2007 the Minister for Agriculture.
•In June 2007, she was appointed as
the Finance Minister Of France.
•In 2011, She was elected as the
Managing Director of IMF.
•She was re-elected for the same in
the year 2016.
•She was also accused and found
guilty the famous Tapai Case by a
French Court.
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9. LIST OF ALL IMF CHEIFS
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11. FAILURES OF IMF
• Failed to establish a stable exchange rate.
• IMF is incapable of taking independent policy decisions.
• Minimal influence over the policy decisions of the major
industrial powers.
•Fund imposes conditions on the poor countries while
sanctioning loans.
•Most of these measures are anti-people in character.
•The Fund has failed to eliminate foreign exchange restrictions
imposed by its members that hamper the growth of trade.
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12. STRUCTURAL
ADJUSTMENT
S
•Cutting expenditures, also known as austerity.
•Devaluation of currencies,
•Trade liberalisation, or lifting import and export restrictions,
•Increasing the stability of investment (by supplementing foreign direct investment with
the opening of domestic stock markets).
•Balancing budgets and not overspending,
•Removing price controls and state subsidies,
•Privatization, or divestiture of all or part of state-owned enterprises,
•Enhancing the rights of foreign investors vis-a-vis national laws,
•Improving governance and fighting corruption.
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13. SPECIAL DRAWING RIGHTS (
SDR )
• International type of monetary reserve currency created by the International
Monetary Fund (IMF) in 1969 .
• A supplement to the existing reserves of member countries.
• It’s a claim against the freely usable currencies that belong to the IMF
member states.
• SDRs can be exchanged/supplemented with freely usable currencies.
• SDRs also have exchange rate and is denoted in terms of US Dollar.
•Current Rate 1SDR= 1.4436$
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14. INDIA USA CHINA PAKISTAN
QUOTA (Millions) 13,114 82,994 30,483 2,031
SDR (Millions) 1,061 36,417 7,721 394
ARRANGEMENTS 7 2 2 21
OUTSTANDINGS 0 0 0 4,393
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