Ihe role of IMF in Development of International Business

1. The Role of IMF in Development of International
Business
Presented By: Suraj Panpatte

2. 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.
History of IMF

3. About IMF
• Year the IMF was established1994
• Members of countries189
• Nationalities represented by staff150
• Executive directors24
• Total amount of IMF is able to lend to its members
countries
1 trillion dollars
• Current lending agreement36
• Interest rate on loan to low-income countries0%
• For hands on technical advice, training and other
activity.
303 million dollars
Source: IMF Website

4. As set forth in its Articles of Agreement, the purposes of the IMF are
(1) to promote international cooperation on international monetary problems,
(2) to facilitate the expansion and balanced growth of international trade,
promoting high levels of employment and real income and the development
of productive resources in all member countries
(3) to promote exchange rate stability and to avoid competitive exchange
rate depreciation,
The IMF’s Mandate

5. (4) to help establish a multilateral system of payments among countries
for current transactions and to help eliminate foreign exchange restrictions
which hamper world trade,
(5) to make loans to member countries on a temporary basis with adequate
safeguards for repayment,
(6) to shorten with such loans the duration and to lessen the degree of
disequilibrium in the international balances of payments of members.

6. 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

7. 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.

8. What the IMF does?
IMF
TECHNICAL
ASSISTANCE
SURVEILLENCE
LENDS

9. 1. Surveillance
The IMF promotes economic stability and global growth by
encouraging countries to adopt sound economic and financial policies.
To do this, it regularly monitors global, regional, and national economic
developments. It also seeks to assess the impact of the policies of
individual countries on other economies.
This process of monitoring and discussing countries’ economic and
financial policies is known as Bilateral Surveillance.

10. 2. Technical Assistance and Training
IMF offers technical assistance and training to help member countries
strengthen their capacity to design and implement effective policies.
Technical assistance is offered in several areas, including fiscal policy,
monetary and exchange rate policies, banking and financial system
supervision and regulation, and statistics.

11. 3. Lending
IMF financing provides member countries.
A policy program supported by financing is designed by the
national authorities in close cooperation with the IMF.
Continued financial support is conditional on the effective
implementation of this program.
https://www.imf.org/external/a
bout/howwedo.htm
Source:

12. Role of IMF
1) Promoting research in various areas of international economics
and monetary economics.
2) Providing a forum for discussion and consultation among
member countries.
3) Focusing on its core macroeconomic and financial areas of
responsibility.
4) Working in a complementary fashion with other institutions
established.

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5) It works to foster global growth and economic stability by
providing policy advice and financing the members by working
with developing nations to help them achieve macroeconomic
stability and reduce poverty.
6) The IMF is playing an expanding role in the global monetary
system.
7)To facilitate the expansion and balanced growth of international
trade.
8) To promote international monetary cooperation

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Thank You