THE INTERNATIONAL MONETARY FUND
The International Monetary Fund (IMF) is an international organization that was created on
July 22, 1944 at the Bretton Woods Conference and came into existence on December 27,
1945 when 29 countries signed the Articles of Agreement. It originally had 45 members. The
IMF's stated goal was to stabilize exchange rates and assist the reconstruction of the world’s
international payment system post-World War II. Countries contribute money to a pool through
a quota system from which countries with payment imbalances can borrow funds temporarily.
Through this activity and others such as surveillance of its members' economies and policies,
the IMF works to improve the economies of its member countries. The IMF describes itself as
“an 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.” The organization's stated objectives
are to promote international economic cooperation, international trade, employment, and
exchange rate stability, including by making financial resources available to member countries
to meet balance of payments needs. Its headquarters are in Washington, D.C., United States.
Any country may apply to be a part of the IMF. Post-IMF formation, in the early postwar
period, rules for IMF membership were left relatively loose. Members needed to make periodic
membership payments towards their quota, to refrain from currency restrictions unless granted
IMF permission, to abide by the Code of Conduct in the IMF Articles of Agreement, and to
provide national economic information. However, stricter rules were imposed on governments
that applied to the IMF for funding. The countries that joined the IMF between 1945 and 1971
agreed to keep their exchange rates secured at rates that could be adjusted only to correct a
"fundamental disequilibrium" in the balance of payments, and only with the IMF's agreement.
Voting power: Voting power in the IMF is based on a quota system. Each member has a
number of “basic votes" (each member's number of basic votes equals 5.502% of the total
votes), plus one additional vote for each Special Drawing Right (SDR) of 100,000 of a member
country’s quota. Some members have a very difficult relationship with the IMF and even when
they are still members they do not allow themselves to be monitored. Argentina for example
refuses to participate in an Article IV Consultation with the IMF.
Benefits: Member countries of the IMF have access to information on the economic policies of
all member countries, the opportunity to influence other members’ economic policies,
technical assistance in banking, fiscal affairs, and exchange matters, financial support in times
of payment difficulties, and increased opportunities for trade and investment.
The International Monetary Fund (IMF) is an international organization that was created on
July 22, 1944 at the Bretton Woods Conference and came into existence on December 27,
1945 when 29 countries signed the Articles of Agreement. It originally had 45 members. The
IMF's stated goal was to stabilize exchange rates and assist the reconstruction of the world’s
international payment system post-World War II. Countries contribute money to a pool through
a quota system from which countries with payment imbalances can borrow funds temporarily.
Through this activity and others such as surveillance of its members' economies and policies,
the IMF works to improve the economies of its member countries. The IMF describes itself as
“an 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.” The organization's stated objectives
are to promote international economic cooperation, international trade, employment, and
exchange rate stability, including by making financial resources available to member countries
to meet balance of payments needs. Its headquarters are in Washington, D.C., United States.
Any country may apply to be a part of the IMF. Post-IMF formation, in the early postwar
period, rules for IMF membership were left relatively loose. Members needed to make periodic
membership payments towards their quota, to refrain from currency restrictions unless granted
IMF permission, to abide by the Code of Conduct in the IMF Articles of Agreement, and to
provide national economic information. However, stricter rules were imposed on governments
that applied to the IMF for funding. The countries that joined the IMF between 1945 and 1971
agreed to keep their exchange rates secured at rates that could be adjusted only to correct a
"fundamental disequilibrium" in the balance of payments, and only with the IMF's agreement.
Voting power: Voting power in the IMF is based on a quota system. Each member has a
number of “basic votes" (each member's number of basic votes equals 5.502% of the total
votes), plus one additional vote for each Special Drawing Right (SDR) of 100,000 of a member
country’s quota. Some members have a very difficult relationship with the IMF and even when
they are still members they do not allow themselves to be monitored. Argentina for example
refuses to participate in an Article IV Consultation with the IMF.
Benefits: Member countries of the IMF have access to information on the economic policies of
all member countries, the opportunity to influence other members’ economic policies,
technical assistance in banking, fiscal affairs, and exchange matters, financial support in times
of payment difficulties, and increased opportunities for trade and investment.
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