The International Monetary Fund (IMF) is an international organization that oversees the global financial system. It aims to promote international monetary cooperation, facilitate balanced global trade, maintain exchange rate stability, and provide loans to countries experiencing economic hardship. The IMF has 189 member countries and is governed by a Board of Governors and Executive Board. It monitors countries' economic policies, provides financial assistance through loans, and offers technical support to help strengthen members' financial systems and reduce global poverty.

1. INTERNATIONAL
MONETARY FUND (IMF)

2. INTERNATIONAL MONETARY FUND(IMF)
 It is an international organisation that overseas the global financial system by
observing exchange rates and balance of payments, as well as offering financial
and technical assistance. Its headquarters are located in Washington, D.C., USA

3. Introduction

4. objectives
 The aims were :
• To avoid the competitive devaluation and exchange control.
• Establish and maintain currency convertibility with stable exchange rates.
• Develop multilateral trade and payment.
• To reduce the poverty around the world.
 Now IMF seeks to promote:
• High employment
• Sustainable growth
 Now the IMF :
• The central institution embodying the international monetary system
• Promotes balanced expansion of world trade
• Makes correction of balance-of-payment problems.
• Makes stable exchange rates

5. History of contribution in global economy
 • Cooperation and reconstruction of post-ww2 economy (1944–71)
 • Managing the collapse of the Bretton Woods system (1972–81)
 • Societal Change for Eastern Europe and Asian Upheaval (1990–2004)
 • Globalization and the Crisis (2005 - present

6. The IMF today
 • Membership: 189 countries
 • Board of Governors
 • Executive Board: 24 Directors each representing a single country or a
group of countries
 • Staff: Approximately 2,663 from 148 countries

7. Governance Structure
 • The Board of Governors is the
highest decision-making body of the
IMF.
 • The IMF Board of Governors is
advised by two ministerial
committees,
 • The International Monetary and
Financial Committee (IMFC)- A
committee of 24 members,
drawn from the pool of 189
governors. Its structure mirrors that
of the Executive Board and its 24
constituencies.
 • The Development Committee

8. Governance structure…..
 Executive board members are selected by governors and exercises most of
delegated powers except the right for
• Approving quota increases
• Special drawing right (SDR) allocations
• Admittance of new members
• Compulsory withdrawal of members
• Articles of Agreement
• By-Laws

9. How a Country Can Join the IMF?
• Application to be a part of the IMF
• Membership payments, or quotas, which are assigned to individual countries
based on their economic size and stipulate how much they contribute.
• Adherence to the Code of Conduct, and stricter regulations
Country Representation
• Each country or region is represented by a member on the Fund's Executive
Board and numerous staff members.
• The ratio of board members & Voting power from each country is based on
the country's Relative Position in Global Economy.

10. The IMF’s Responsibility
 Surveillance
• IMF reviews country policies and national, regional, and global economic and financial
developments
 Financial assistance
• The IMF lends to all member countries under safeguard and with international
obligations.
• For poor countries, it makes such loans at low interest rates and with a longer-than-
normal pay-back period.
• Correcting balance of payments problems.
• Reformed financial aids focused on prevention of global financial crisis and Poverty.
 Technical assistance
• To help member countries strengthen their capacity to design and implement effective
policies including in the areas of tax policy and administration, expenditure management,
monetary and exchange rate policies, banking and financial system supervision and
regulation, legislative frameworks, and statistics.
 Issuing SDRs

11. Role of IMF
 Promote international monetary cooperation
 Facilitate the expansion and balanced growth of international trade
 Promote exchange stability
 Assist in the establishment of a multilateral system of payments
 Make resources available (with adequate safeguards) to members
experiencing balance of payments difficulties

12. The IMF and the World Bank:
The Bretton Woods Institutions
 • IMF focusing on macroeconomic issues and the World Bank concentrating
on long-term economic development and poverty reduction.
 • The IMF promotes international monetary cooperation and provides policy
advice and capacity development support; On the other hand, the World
Bank promotes long-term economic development and poverty reduction
by providing technical and financial support.
 • IMF loans are short and medium term and funded mainly by the pool of
quota contributions that its members provide. World Bank assistance is
generally long term loan and is funded both by member country
contributions and through bond issuance.

13. Criticism of IMF
• Loans are too intrusive and compromise the economic and political
sovereignty of the receiving countries.
• ‘One-size-fits-all’ policies on countries
• Policies were imposed all at once
• Not open to criticism or public oversight

15. IMF and India
 India has received help to correct its balance of payments disequilibrium.
 On account of its membership of the fund, India has also become a member of
world bank, as result, India has received large economic assistance
 India has also received technical assistance from the fund.
 India has received financial assistance from the fund in the event of any emergency.
 India has a key role in the policy making of the fund.
 At present, India is an elected director of IMF. Now because of improvement in our
foreign exchange reserves, our government is not taking any loans from IMF. Now
India has paid back all the loans taken from IMF

16. Conclusion
 The IMF is one of most influential International Financial Institution committed for
the reducing global poverty by meeting the challenges and opportunities of
globalization. Hence, It urges on its member countries continued cooperation on
transparent monetary and economic policies, honest government, and the
establishment of rule of law. Although the IMF has been contributing to the
economic development of developing countries, we need to deeply examine the
recommendations before accept the Fund’s assistance because of some
controversial events has arisen before

17. Presented by
Diksha gautam
M.com 4th sem.

18. Thank you