Study Material : International Monetary Fund (IMF)

by admin on September 15, 2020 in Study MaterialsUGC NETUPSC Competitive Exams

UGC NET : International Monetary Fund (IMF) UPSC : International Monetary Fund (IMF) International Monetary Fund (IMF) The International Monetary Fund (IMF) is an organization of 189 countries Bretton Woods Bretton Woods is a place in New Hampshire State of USA In 1944, President Roosevelt hosted a conference here, to rebuild the world economy, after […]

Objectives of IMF

  • Promote international monetary cooperation
  • Facilitate balanced growth of international trade
  • Promote exchange rate stability
  • Assist in establishing multilateral payments
  • Provide financial assistance to member countries facing balance of payments issues

Membership

As of today, the IMF has 190 member countries. Each member’s influence in IMF decisions is based on a quota system, which reflects the country’s relative size in the global economy.


Functions of the IMF

  1. Surveillance
    Monitors the global economy and economic policies of its members.
  2. Financial Assistance
    Provides short to medium-term loans to countries in economic distress.
  3. Technical Assistance & Training
    Offers guidance and training in public finance management, monetary policy, exchange rate issues, and more.
  4. Research & Data
    Publishes global economic outlooks, policy papers, and regional reports.

IMF Lending Instruments

  • Stand-By Arrangements (SBAs) – for short-term balance of payment issues
  • Extended Fund Facility (EFF) – for medium to long-term problems
  • Poverty Reduction and Growth Trust (PRGT) – for low-income countries
  • Rapid Financing Instrument (RFI) – for emergency financial needs

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