The IMF provides short-term loans to countries experiencing balance of payments issues to help promote economic growth. It was established in 1944 at the Bretton Woods Conference along with the World Bank to foster international cooperation and monetary stability between member countries. The IMF currently has 189 member countries and works to secure global financial stability through surveillance, policy advice, and lending programs.

1. The IMF provides financial assistance to its
Member countries /to help them to correct/
BOP problems which promotes
sustained growth
INTERRNATIONAL
MONETORY
FUND

2. THE BRETTON WOODS CONFERENCE WAS
HELD FROM THE 1ST TO 22ND OF JULY,
1944
Created two major institutions:
– IMF : (grants the short term loans to develop the
cyclical disturbance in economy
– World bank : (long term loan for distressed
economy and member countries)

3. What is IMF?
International Monetary Fund (IMF) is
an organization working to foster global
monetary co-operation, of 189 countries
Secure
financial
stability &
Facilitate
international
trade
Promote
high
employment
Sustainable
economic
growth
Reduce
poverty
around the
world

4. At the end of Second World War, different countries realized
that there must be a need of common International Forum
• For achieving economic cooperation,
promoting International Trade and providing
help to needy nations during emergency.
• IMF was formed for this purpose.
– IMF formed with a stated objective of
stabilizing international exchange rates
and facilitating development.

5. Fast facts
Membership: 189 countries
Headquarters: Washington, D.C.
Executive Board: 24 Directors
Representing countries/groups of countries
Staff: Approximately 2,670 from 154 countries
Total Quotas : US$ 360 billion
Biggest Borrowers : Greece, Portugal ,Ireland

6. History-Background of IMF

7. CREATIONS OF IMF
• The IMF was think of in July 1944, when representatives
of 45 governments agreed on a framework for international
economic cooperation.
• The IMF came into formal existence in December 1945,
when its first 29 member countries signed its Articles of
Agreement
• It began operations on March 1, 1947. Later that year,
France became the first country to borrow from the IMF.

8. Member Countries
189
Countries
To become a member, a
country must apply
and then be accepted
by a majority of the
existing members
In 2014 the
Nauru, in
2012, the
South Sudan
joined the
IMF

9. MEMBERSHIP_ two types
1) ORIGINAL MEMBERS-
All those countries whose representatives
took part in Bretton Woods Conference and who
agreed to be the member of the fund prior to
31stDecember,1945, are called Original Members
2) ORDINARY MEMBERS-
All those countries who became its member
subsequently are called Ordinary Members.

10. Objectives Of IMF
1) To Promote International Monetary Cooperation
IMF provides machinery for consultation and
collaboration on International monetary problems.
2) To Establishment a System of Multilateral Payments
To avoid old bilateral trade by the elimination
of exchange restrictions which hampers the growth of
smooth trade relations in world trade
3) To Maintain Stability in the Rate of Exchange
(II world war) great instability was prevailing
in foreign exchange rates which adversely affected the
international trade.

11. 4) To Provide Aid to Members during emergency
Funds will provide short-term monetary
help to its member countries during any type of
emergency
5) To reduce Disequilibrium in Balance of Payments
IMF helps inn eliminating the problem by
selling or lending foreign currencies to the member
countries with its financial assistance and guidance
6) To promote balanced economic development_
It facilitates the expansion of balanced
growth by the promotion and maintenance of high
level of employment as the primary objective of
economic policy

12. FUNCTIONS OF IMF
• Surveillance (like a doctor)
Gathering data and assessing economic
policies of countries
• Technical assistance (like a teacher)
Strengthening human skills and institutional
capacity of countries.
• Financial assistance (like a banker)
Lending to countries to support restructurings

13. {FUNCTIONS OF IMF

14. ᴥ The first important function of IMF is to
maintain exchange stability and
thereby to discourage any fluctuations in
the rate of exchange.
ᴥ It ensures stability by making necessary
arrangements like—enforcing
declaration of par value of currency of
all members in terms of gold or US
dollar.
1. Exchange Stability

15. § The Fund is helping the member countries
in eliminating or minimizing the short-
period equilibrium of balance of payments
either by selling or lending foreign
currencies to the members.
§ The Fund also helps its members towards
removing the long period disequilibrium
in their balance of payments.
2. Eliminating BOP Disequilibrium

16.  IMF monitors member country
policies as well as national,
regional, and global economic
and financial developments
through a formal system known
as surveillance
3. Surveillance

17.  The IMF has an important function
to advise the member countries on
various economic and monetary
matters and thereby to help
stabilize their economies.
4. Stabilize Economies

18.  IMF is maintaining various borrowing
and credit facilities so as to help the
member countries in correcting
disequilibrium in their balance of
payments.
 These credit facilities include-(basic credit
facility, extended fund facility for a period
of 3 years), compensatory financing
facility etc.
 The Fund also charges interest from the
borrowing countries on their credit.
5. Credit Facilities

19.  To maintain liquidity of its
resources is another important
function of IMF.
 Accordingly, there is provision for
the member countries to borrow
from IMF by surrendering their
own currencies in exchange
6. Maintenance of Liquidity

20.  Such technical assistance in given in
two ways, i.e.,
 firstly by granting the members
countries the services of its
specialists and experts and
 secondly by sending the outside
experts.
7. Technical Assistance

21.  The Fund also aims at reducing
tariffs and other restrictions
imposed on international trade by
the member countries so as to
terminate restrictions of
remittance of funds or to avoid
discriminating practices.
8. Reducing Tariffs

22.  The IMF is also keeping a general
watch on the monetary and fiscal
policies followed by the member
countries to ensure no flouting of
the provisions of the charter
9. General Watch