International Monetary Fund: IMF

IMF

About IMF

Originates at 1945 — UN conference in Bretton Woods, 1944
Headquarters — Washington
Member — 189 countries

Responsibility:

It ensures the stability of the international monetary system. It does so in three ways:
1. keeping track of the global economy and the economies of member countries.
2. lending to countries with balance of payments difficulties.
3. giving practical help to members.

Board of Governors:

1. Highest decision-making body of the IMF and is vested with all powers of IMF One governor & One alternate governor for each member country.

2. Governor is appointed by the member country and is usually the minister of finance or the governor of the central bank

Resources for IMF loans:

These are provided by member countries, primarily through their payment of quotas.

Voting share: Based on the quota of country
Quota: based broadly on its relative position in the world economy.

1. largest member — United States (quota – SDR82.99 billion)
2. smallest member – Tuvalu( quota – SDR2.5 million)
3. India — quota – 2.76% (8th position) & Voting share – 2.64%

Special Drawing Rights (SDR):

SDR is international reserve asset, created by the IMF in 1969 to supplement its member countries’ official reserves. It’s value is based on a basket of five major currencies—the US dollar, the euro, the Chinese renminbi (RMB), the Japanese yen, and the British pound sterling. The SDR is neither a currency, nor a claim on the IMF. Rather, it is a potential claim on the freely usable currencies of IMF members. Holders of SDRs can obtain these currencies in exchange for their SDRs in two ways.

Publications:

1. World Economic Outlook
2. Global Financial Stability Report
3. Fiscal Monitor
4. Regional Economic Prospects
5. Finance and Development

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