International Monetary Fund
Overview:
| IMF Established: | December 1945. |
| IMF Members: | 190 Members |
| IMF Headquarters: | Washington D.C., The United States. |
| IMF Managing Director: | Kristalina Georgieva |
| IMF Chief Economist: | Gita Gopinath. |
| Parent Organization: | United Nations. |
What is IMF?
The IMF is an international financial organization working to foster global monetary cooperation and secure financial stability in the world. The IMF has the capacity to lend $1 trillion to its member countries. The IMF provides loans to low-income countries at a 0% interest rate. During the Covid-19 pandemic, the IMF provides emergency funds to 76 low-income countries.
Establishment of the IMF:
The process of creating an international financial organization was started in July 1944 at the United Nations Bretton Woods conference in New Hampshire, United States. The representatives of 44 countries discussed a framework for international economic cooperation at that conference, and the IMF came into existence in December 1945.
Members of the IMF:
Currently, the IMF is governed by 190 countries across the globe. Only five countries are not the members of IMF, and they are Cuba, The Republic of China (Taiwan), Liechtenstein, Monaco, and North Korea.
IMF Objectives:
The main objective of the IMF is to ensure the stability of the international monetary system. It also works to foster global monetary cooperation, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world. The other important objectives of the IMF are as given.
1. Economic Surveillance. It means the IMF monitors the economic and financial policies of the member countries, and highlights possible risks to the stability of the country, and advises on needed policy adjustments.
2. The Lending of money. The IMF provides loans to member countries on very low or 0% interest rates.
3. Capacity development. It means the IMF works with member countries to modernize their economic policies, institutions, and train their people. This helps countries to strengthen their economy, improve growth, and create jobs.
IMF Headquarters:
The headquarters of the IMF is situated in Washington D.C., The United States.
IMF Board of Governors:
Each member country appoints its two governors to represent the country in the IMF. The board of governors meets at least once a year. The board of governors is responsible to elect the managing director of the IMF.
India and IMF:
India is an active member of the International Monetary Fund.