The document summarizes the International Monetary Fund (IMF), an international organization established in 1945 with 188 member countries. The IMF aims to ensure stability of the international monetary system and assist countries with payment imbalances through lending. It conducts economic surveillance of members and provides technical assistance. The IMF is governed by a Board of Governors and overseen by a 24-member Executive Board. It assists countries in reconstructing payment systems and fostering global monetary cooperation.
2. Prepared By
Manu Melwin Joy
Assistant Professor
Ilahia School of Management Studies
Kerala, India.
Phone – 9744551114
Mail – manu_melwinjoy@yahoo.com
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3. Introduction
• The International
Monetary Fund (IMF)
is an international
organization that was
initiated in 1944 at
the Bretton Wodds
Conference and
formally created in
1945 by 29 member
countries.
4. Introduction
• The IMF is a self-described
"organization of 188
countries, working to foster
global monetary
cooperation, secure
financial stability, facilitate
international trade,
promote high employment
and sustainable economic
growth, and reduce poverty
around the world.”
5.
6. Official Goal
• The IMF's stated goal was
to assist in the
reconstruction of the
world's International
payment system post–
World War II. Countries
contribute funds to a pool
through a quota system
from which countries with
payment imbalances
temporarily can borrow
money and other
resources.
7. Official goal
• As of the 14th General Review
of Quotas in late 2010 the
fund stood at SDR476.8bn, or
about US$755.7bn at then-current
exchange rates.
Through this fund, and other
activities such as surveillance
of its members economies
and the demand for self-correcting
policies, the IMF
works to improve the
economies of its member
countries.
8.
9. The IMF’s responsibilities
• The IMF's primary
purpose is to ensure the
stability of the
international monetary
system—the system of
exchange rates and
international payments
that enables countries
(and their citizens) to
transact with each other.
10. The IMF’s responsibilities
• Surveillance: To maintain
stability and prevent crises in
the international monetary
system, the IMF reviews
country policies and national,
regional, and global economic
and financial developments
through a formal system
known as surveillance. The IMF
advises its 188 member
countries, encouraging policies
that foster economic stability,
reduce vulnerability to
economic and financial crises,
and raise living standards.
11. The IMF’s responsibilities
• Financial Assistance: IMF
financing provides member
countries the breathing room
they need to correct balance of
payments problems. A policy
program supported by IMF
financing is designed by the
national authorities in close
cooperation with the IMF, and
continued financial support is
conditioned on effective
implementation of this program.
12. The IMF’s responsibilities
• Technical Assistance: The IMF
provides 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 tax
policy and administration,
expenditure management,
monetary and exchange rate
policies, banking and financial
system supervision and
regulation, legislative
frameworks, and statistics.
13. Resources
• The primary source of the
IMF's financial resources is its
members’ quotas, which
broadly reflect members’
relative position in the world
economy. Currently, total
quota resources amount to
about SDR 238 billion (about
$368 billion). In addition, the
IMF can borrow temporarily to
supplement its quota
resources.
14. Governance and organization
• The IMF is accountable to the
governments of its member
countries. At the top of its
organizational structure is the
Board of Governors, which
consists of one Governor and one
Alternate Governor from each
member country. The Board of
Governors meets once each year
at the IMF – World Bank Annual
Meetings. Twenty-four of the
Governors sit on the
International Monetary and
Financial Committee (IMFC) and
normally meet twice each year.
15. Governance and organization
• The day-to-day work of the IMF
is overseen by its 24-member
executive board, which
represents the entire
membership; this work is guided
by the IMFC and supported by
the IMF staff. A proposed
Amendment of the IMF’s Articles
of Agreement will introduce for
the first time an Executive Board
whose members are all elected.
The Managing Director is the
head of the IMF Staff and
Chairman of the Executive Board
and is assisted by four Deputy
Managing Directors.
