PRESENATION ON IMF, ITS FUNCTIONING AND GENERAL DETAILS. ROLE OF IMF IN WORLD ECONOMICS. STUDY OF IMF IN TERMS OF AGRICULTURAL FINANCE.

1. By: AYUSH MISHRA
PRESENTATION ON IMF

2. The IMF is an intergovernmental institution
established by an international treaty in
1945 to create a framework for
international economic cooperation,
focusing on balance of payment problem &
stability of currencies.
IMF headquarter is in Washington D.C.,
US.

3.  In the beginning
there were 29
members countries,
but in 2007 the
member countries in
IMF became 185.
 Currently there are
189 member
countries in IMF.
 Christine Lagarde is
the M.D of IMF.

4. Christine Lagarde, M.D IMF

5.  IMF was founded on 27th December 1945 after Bretton
woods conference in New Hampshire (U.S). During
the closing years of world war 2 different countries
realized that there must be a common International
forum for achieving economic cooperation, promoting
international trade & providing help to needy nations
during emergency.

6.  To remedy the adverse effects of world war 2 on the
global economy Bretton woods conference was held in
1945 in U.S.
 It was attended by members of 44 countries including
India.
 It was decided in this conference to setup IMF for
economic development of all countries.

7.  To provide International monetary cooperation.
 To establish a system of multilateral payments.
 To maintain stability in rate of exchange.
 To provide aid to members during emergency.
 To promote balanced economic development.

8.  It provide a mechanism for improving short term
balance of payments (BoP).
 It provide machinery for international consultations.
 Technical Assistance
 Imparts training
 Provide various facilities during emergency.
 It serve as a short term credit institution.
 Determine exchange rate for every currency.

9.  Most of the money comes from quota subscriptions.
 Each member nation contributes money when it joins
IMF. The capital resources of funds are subscribed
by various member by way of their respective
quotas.
 Each member country is required to subscribe its
quota partly in gold and partly in its own national
currency.

10.  SDR is an invented currency. Its value is based on the
worth of worlds 5 major currencies i.e. U.S dollar,
Pound sterling, Euro, Chinese RMB and Japanese yen.
 Countries add SDR to their holding of foreign
currencies. The current SDR reserve is $285 billion.

11.  There are two types of
members:-
 1) Original Member:- All
those countries whose
representatives took part
in Bretton woods
conference & who agreed
to be the member of IMF
prior to 31st December
1945.

12.  2) Ordinary member:- All those countries who became its
member subsequently are called Ordinary members.
 Any country can be its member after giving a notice in
writing to that effect. IMF can terminate the membership
of such a country which does not observe its rules.

13.  International monetary cooperation.
 Reconstruction of European countries especially
European Union.
 Multilateral system of foreign payments.
 Increase in International trade.
 Easiness & flexibility in making international
payments.

14.  Lack of stability in exchange rate.
 Lack of stability in the price of gold.
 Inability to remove restriction on foreign trade.
 Inability to tackle monetary crisis.
 Interference in domestic economies.

15.  India is a founder
member of IMF. Earlier
India was a permanent
executive director of the
board of governors.
 At present India is no
longer a permanent
director in board. India is
now an elected member
of IMF.

16.  Facility of foreign exchange
 Freedom from British pound
 Membership of work bank
 Economic consultation
 Help in foreign exchange crisis
 Special Drawing Rights

17.  The IMF works to foster global and economic stability.
It provides policy advice and financing to members in
economic difficulties and also with developing nations
to help then achieve macroeconomic stability and
reduce poverty.