IMF: The International Monetary Fund
The International Monetary Fund (IMF) is an international financial organization in the world. Its headquarters is in Washington, D.C. The head office distributes in 190 countries in the world. The IMF claims to be working to promote global monetary cooperation, economic security, global trade facilitation, job growth and long-term economic growth, and poverty reduction.
IMF was established in 1944. The organization started work on December 27, 1945, at the Bretton Woods Conference. The purpose of the IMF is to recreate the international monetary system. It the principally based on the thoughts of Harry Dexter White & John Maynard Keynes. It came into formal presence in 1945 with 29 member countries. The goal of rebuild the international monetary system.
The managing director (MD) of the International Monetary Fund (IMF) is Kristalina Georgieva. He is a chairwoman, a position she has held since October 1, 2019. Since Gita Gopinath has been the Chief Economist of the International Monetary Fund in 2018. Gopinath served as the Chief Economic Advisor to Kerala’s Chief Minister before attending the IMF.
It now plays a very important key role in participating with the balance of payments problems and foreign financial problems. Countries contribute monies to a pool via a quota system, and countries with balance-of-payments concerns can borrow money from it. The fund had XDR 477 billion in assets as of 2016.
Purpose of International Monetary Fund (IMF)
The International Monetary Fund (IMF) seeks to empower the economy of its member countries through the fund. The other functions of the organization are, such as data gathering and analysis, economic monitoring, and policy recommendations. The aims of the organization are stated in the Articles of Agreement. The aims are to promote international monetary cooperation, international commerce, employment levels, exchange-rate constancy, continuous economic development, and making resources available to member countries in financial distress.
However, the two primary sources of IMF financing are quotas and loans. Quotas, which are pool monies from member countries, account for the majority of IMF funds. The importance of a member’s quota in the global economy and financial system determines its quota level. For states with larger economic effects, quotas are higher. Quotas are increased on the regular basis to enhance the IMF’s special drawing authorization resources.
