Fund(IMF)

Fund(IMF) The International Monetary fund or the Fund is the world’s largest premier international financial institution. It was conceived at the Bretton Woods conference in as a global response ( to the great economic depression of the 1930s. The fundamental idea for setting up an international financial institution was to help avoid the ‘beggar thy neighbour’ policies that characterized that period. It was established to provide short term and medium term finance to member countries facing balance of payments difficulties so that they could pursue policies of economic adjustment that did not rely on competitive devaluation and protectionist trade policies. The Mandate of the International Monetary Fund The International Monetary Fund (IMF) is an independent international Organisation with member countries with the objective to promote economic stability and growth. The member countries are the shareholders in the cooperative and provide capital for the International Monetary Fund through quota subscription. The IMF in return provides its members with macroeconomic policy advice, financial aid in times of balance payments need and technical assistance and training to improve national economic management. The IMF is one of the several autonomous Organisations of the UN with the designation of specialized agency and is also a permanent observer of the UN. Article of the IMF mandate sets out the following objectives: To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems. To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy. To promote exchange stability, to maintain orderly exchange arrangements among members, and to avoid competitive exchange depreciation. To assist in the establishment of a multilateral system of payments in respect of current transactions between members and in the elimination of foreign exchange restrictions which hamper the growth of world trade. To give confidence to members by making the general resources