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International Monetary Fund
Introduction of IMF
 The International Monetary Fund (IMF) is an
international organization headquartered in Washington,
D.C., comprised of 189 member countries.
 Establish in 27 December 1944, 44 countries in the part
of IMF.
 IMF worked started from 1 March 1947.
What Is IMF
International Monetary Fund is an organization
working to foster global monetary cooperation,
of 189 countries to.
Secure financial stability
Facilitate international trade
Promote high employment
Sustainable economic growth
Reduce poverty around the world
The IMF functions
Overseeing the economics of member countries
Lending to countries with balance of payment
issues
Offering technical assistance to its member
countries
Balance of Payment:
The balance of payments provides a Framework that
is applicable for a range of economies. From the
smallest and least developed economics to the more
advanced and complex economics. As a result, it is
recognized that some items may not be relevant in all
cases.
IMF Has Different Type of Loans
Type of loan Interest Rate
%
Duration
Flexible Credit
Line
This is usually given to
countries well before
they get into a problem.
12 month
Precautionary
liquidity line
This is for countries that
are beginning to get
weak.
1-2 years
Stand By
Arrangement
This is for countries that
are quite weak, but can
be rescued quickly.
12-24
months (no
more then
36 months)
Extended Fund
facility
This is for countries that
are in a lot of trouble
and will need help for a
long time.
4-10 years
At a Glance India
2019 Projected Real GDP (% Change) : 7.0
Country Population: 1,351.774 million
Date of Membership: December 27, 1945
Article IV/Country Report: August 7, 2018
Special Drawing Rights (SDR): 1047.48 million
Quota (SDR): 13114.4 million
Number of Arrangements since membership: 7
GDP Data from July 2019 World Economic Outlook
What is SDR
Special Drawing Rights are supplementary foreign exchange
reserve assets defined and maintained by the international
monetary fund. SDRs are unit of account for the IMF, and not
a currency per se.
IMF Pegged with: U. S. dollar, Euro, Chinese yuan (2016),
Japanese yen, and Pound sterling
What is QUOTA
A member country's quota determines its maximum financial
commitment to the IMF, its voting power, and has a bearing
on its access to IMF financing. When a country joins the
IMF, it is assigned an initial quota in the same range as the
quotas of existing members of broadly comparable
economic size and characteristics
Top Quota countries,
USA 17.68%
Japan 6.56%
China 6.51%
INDIA has been 8th position in Quota 2.79%
Structure Of IMF
IMF is Governed by four main bodies:
1. Governing Body
2. Executive Board
3. Managing director
4. IMF Staff
The Governing Body
All powers of the IMF are Vested in its board
of governors, all the members of countries
are represented. (188)
 Ministry of finance or president of central
bank
 Governor and alternate governor
Meet once in a year in Washington, DC
Executive Board
 24 Executive directors.
 5 are appointed by the countries having largest
quotas
 US, UK, Japan, China, France
 19 are appointed by regional groups of remaining
members
 fund general operation
Function in continuous session
IMF Managing Directors
 Headed by Executive Board
 Managing director is chosen by E.B
 It is responsible for the conduct of the ordinary
business of the fund
 manager appointed for 5 years
IMF staff
 It has staff of about 2400 economists, statisticians,
research scholars, experts in public finance and
taxation and in finance systems and banking,
linguists, writers and editors, support personnel.
 Most headquarter in Washington, DC.

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International Monetary Fund (IFM subject).pptx

  • 2. Introduction of IMF  The International Monetary Fund (IMF) is an international organization headquartered in Washington, D.C., comprised of 189 member countries.  Establish in 27 December 1944, 44 countries in the part of IMF.  IMF worked started from 1 March 1947.
  • 3. What Is IMF International Monetary Fund is an organization working to foster global monetary cooperation, of 189 countries to. Secure financial stability Facilitate international trade Promote high employment Sustainable economic growth Reduce poverty around the world
  • 4. The IMF functions Overseeing the economics of member countries Lending to countries with balance of payment issues Offering technical assistance to its member countries
  • 5. Balance of Payment: The balance of payments provides a Framework that is applicable for a range of economies. From the smallest and least developed economics to the more advanced and complex economics. As a result, it is recognized that some items may not be relevant in all cases.
  • 6. IMF Has Different Type of Loans Type of loan Interest Rate % Duration Flexible Credit Line This is usually given to countries well before they get into a problem. 12 month Precautionary liquidity line This is for countries that are beginning to get weak. 1-2 years Stand By Arrangement This is for countries that are quite weak, but can be rescued quickly. 12-24 months (no more then 36 months) Extended Fund facility This is for countries that are in a lot of trouble and will need help for a long time. 4-10 years
  • 7. At a Glance India 2019 Projected Real GDP (% Change) : 7.0 Country Population: 1,351.774 million Date of Membership: December 27, 1945 Article IV/Country Report: August 7, 2018 Special Drawing Rights (SDR): 1047.48 million Quota (SDR): 13114.4 million Number of Arrangements since membership: 7 GDP Data from July 2019 World Economic Outlook
  • 8. What is SDR Special Drawing Rights are supplementary foreign exchange reserve assets defined and maintained by the international monetary fund. SDRs are unit of account for the IMF, and not a currency per se. IMF Pegged with: U. S. dollar, Euro, Chinese yuan (2016), Japanese yen, and Pound sterling
  • 9.
  • 10. What is QUOTA A member country's quota determines its maximum financial commitment to the IMF, its voting power, and has a bearing on its access to IMF financing. When a country joins the IMF, it is assigned an initial quota in the same range as the quotas of existing members of broadly comparable economic size and characteristics Top Quota countries, USA 17.68% Japan 6.56% China 6.51% INDIA has been 8th position in Quota 2.79%
  • 11. Structure Of IMF IMF is Governed by four main bodies: 1. Governing Body 2. Executive Board 3. Managing director 4. IMF Staff
  • 12. The Governing Body All powers of the IMF are Vested in its board of governors, all the members of countries are represented. (188)  Ministry of finance or president of central bank  Governor and alternate governor Meet once in a year in Washington, DC
  • 13. Executive Board  24 Executive directors.  5 are appointed by the countries having largest quotas  US, UK, Japan, China, France  19 are appointed by regional groups of remaining members  fund general operation Function in continuous session
  • 14. IMF Managing Directors  Headed by Executive Board  Managing director is chosen by E.B  It is responsible for the conduct of the ordinary business of the fund  manager appointed for 5 years
  • 15. IMF staff  It has staff of about 2400 economists, statisticians, research scholars, experts in public finance and taxation and in finance systems and banking, linguists, writers and editors, support personnel.  Most headquarter in Washington, DC.