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International
Monetary Fund –
Group 3

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 The concept of IMF
an organization of 185 countries

foster global monetary cooperation

secure financial stability

facilitate international trade

sustainable economic growth

reduce poverty around the world

main goal is to ensure the stability of the international monetary

and financial system
 Governance Structure
The IMF's mandate and governance have evolved along with changes in the
global economy, allowing the organization to retain a central role within the
international financial architecture.
 The process of IMF lending

present an the Board approve

request by arrangement the arrangement Repay the loan
a member to the Fund’s and release the within five years
country Executive Board in loan in phased
a “Letter of Intent” installments
The SDR is an international reserve asset, created by the
IMF in 1969 to supplement the existing official reserves of
member countries.
SDRs are allocated to member countries in proportion to
their IMF quotas. The SDR also serves as the unit of
account of the IMF and some other international
organizations.

Its value is based

on a basket of
key international
currencies.

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As we all know that the global crisis is hitting emerging
market and poor countries hard , the G-20 Financial
Summit has held to make the leaders’ agreement to
support global growth and strengthen financial regulation .
During the summit ,china and other developing countries
wanted to make some changes to the SDRs and the IMF
itself.

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IMF Resources and the G-20
Summit

world leaders pledged to support growth

in emerging market and developing countries
increase the resources available to the IMF by
$250 billion

use additional resources to provide $6 billion

in additional financing for poor countries

support $250 billion to boost global liquidity

urged urgent ratification of the Fourth Amendment to

the IMF's Charter
 Here are some changes :

(1) Expand the issue of SDRs and increase the financing

of IMF ,in order to strengthen the process of SDRs
and IMF.

(2) The quota of IMF should be changed ,the quota of the

innovation-centric economies and developing economies
should be gained.
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(3) The role of the SDRs has not been put into full play due
to limitation on its allocation and the scope of its uses,China
has called for the creation of new global currency by the IMF
,possibly the revival of the SDRs, to replace the US dollars
as the new global currency.

(4) India and China are drafting

a new proposal that would
require the IMF sell all of its
gold ,in order to increase
liquidity of the IMF fund and
help the poorest countries.

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According to these changes the countries wanted ,
IMF has adopted them.

(1) Among the additional funds to be injected into

international financial institutions, 500 billion dollars will
go to the International Monetary Fund (IMF) for it to lend
to countries hit hard by the financial crisis, Of the
additional funding for the IMF, 40 billion dollars will come
from China, 100 billion from the EU, and 100 billion from
Japan, according to Brown.
(2) 250 billion dollars will be used to support a new Special
Drawing Rights (SDR) , 100 billion dollars will support
additional lending by the multilateral development banks,
and 250 billion dollars will be devoted to guarantee trade
finance.
(3) The IMF will think
about selling its gold to
help the poor countries in
the world.

(4) The IMF will take actions to

give the developing countries
and new economies more
audiences, the tradition that
United States and EU separate
in control of IMF will be broke
down , the person in charge will
be anyone who is sagacious.
 Strings attached

example of dealing China and other

with the worsening developing countries
wish to obtain the
global economic “no strings attached”
crisis means loan
additional
conditions
not to influence the have more votes in
debtor countries the IMF deliberations
and push the reform
of the IMF quota And has access to more
foreign exchange
exchange it has
The IMF’s Income model
 LOGO

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