ternational Monetary Fund (Imf)

Introduction
The IMF is an intergovernmental institution established by an international treaty in 1945 to create a framework for international economic cooperation focusing on balance of payment problems and the stability of currencies.

IMF headquarters is in Washington D.C, U.S.A

History / establishment of IMF:
IMF was founded on 27th December, 1945. During the closing years of world war second, different countries realized that there must be a common International Forum for achieving economy cooperation, promoting International Trade and providing help to needy nations during emergency. So IMF was formed for this purpose.

World War Second has its adverse effect on global economy. To remedy the situation, an international monetary conference was convened in 1944, at Bretton Woods in America.

It was attended by the representatives of 44 countries. It was decided in this Conference to set up IMF for the economic development of all countries.

Problems:

Three main problems are: ▪ Economic order and piece ▪ Reconstruction of economies ▪ Stable world piece

Role:
The IMF was intended to play two major roles in the Bretton Woods System: o The fund should discourage aggressive exchange rate behavior by members and help them manage their balance of payments efficiently;

o The fund was given resources to lend international reserves to countries with balance of payments difficulties.

Purposes/ objectives

The purposes of the International Monetary Fund are: • 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...