IMF
The IMF was established in 1944 in Britain Woods, USA by 45 representatives of the governments of different countries. The International Monetary Fund is an organization with 190 member states. Its purpose is to secure economic stability, promote economic progress, reduce poverty, promote employment and facilitate international trade.
Every year all the members of the IMF make their contribution for the operation of this fund. The member paying quota included in this fund can borrow money from this fund due to his financial problems. When a country becomes its new member, they pay their capital in the form of membership (quota) upon becoming a member. The country with the highest share in the IMF is the United States.
Objectives of the International Monetary Fund
- Reducing imbalances in the volume and duration of international trade.
- Stabilizing the international exchange rate and facilitating economic development.
- To encourage international trade at a strong level, so that the income of all member countries increases due to the advancement of trade and high level of employment can be established in them.
- If there is a shortage of foreign exchange reserves with any member country, then to provide loan to him at reasonable interest.
- To provide resources to correct imbalances of payments to all member countries facing balance of payments difficulties.
Structure
Board of Administrators – The Board of Governors consists of an administrator (governor) appointed by each member country. Its tenure is 5 years. The Finance Minister of the member country usually represents the office of the Governor in the first meetings, but in case the Finance Minister is absent, the Governor of the RBI takes his place.
Board of Executive Directors- IMF consists of 24 Executive Directors. Who are elected from 190 governors and represent all the member countries. In this, 5 members are from those countries, which have the most contributions in their monetary fund. The remaining members are elected on a regional basis.
Managing Director- Managing Director is appointed by the Executive Board through voting or consent. The Managing Director of the Board is both the Chairman of the Board of Directors and the Head of the IMF.
Facts
- The special currency of the IMF is SDR (Special Drawing Rights)
- The Headquarters of the IMF is in Washington D.C. (United States of America).
- On 27 December 1945, 29 countries, including India, formally formed the IMF, since then India is its member.
- Its biggest borrowers are Greece, Ukraine, Pakistan and Egypt.
- The IMF is able to lend around $1 trillion dollar to its member countries.
- Currently Indian quota in the IMF is 2.76% , USA has biggest quota of 17.46%.
- Staff: Approximately 2,700 from 150 countries.
