INTERNATIONAL MONETARY FUND

PRESENTED BY :
MD MUZAMMIL HAYAT SUBMITTED TO :
MD TANVIR KHAN DR. BADIUDDIN
MD NAZISH
REZA NOOR
 CONTENT

 INTRODUCTION

 MEMBERSHIP

 STRUCTURE

 SDR

 FUNCTIONS

 OBJECTIVES

 IMF AND INDIA

 SWOT ANALYSIS
 INTRODUCTION

• International Monetary Fund came into formal existence in 1945 with 29 members countries.

• It promote high employment and reduce poverty by making sustainable economic growth
• .
• It was established to provide financial assistance for economics reform after the 2nd world
war.
•
• At present total members of countries are 189.

• Headquarter : Washington

• Present Managing Director is Kristalina Georgia.

•
• It is centralized institution of the international monetary system.
 MEMBERSHIP
• There are two types of membership.
• 1) ORIGINAL MEMBERSHIP: All those countries representatives took part in Bretton Wood conference
• and who agreed to be the member of the fund prior to 31st December 1945 are called original
• members.

• 2) ORDINARY MEMBERS : All those countries who became its member subsequently are called
• ordinary member.

• MEMBERSHIP PROCES
• A willing country have to submit an application to

• executive board, after that a special committee send in that country to finding a fact regarding their
• economicy.
 STRUCTURE
• Board of Governors : There is board of governor from every member country who is who is a
• finance minister or a governor of Central Bank of that country.
•
• Board of Governor elect executive board of member who make a policies regarding IMF.
•
• Executive member elect chairman . (Present :Kristalina Georgievia)

• SURVEILLANCE : IMF scrutiny countries' economic and financial policies to make a report and
• provide financial assistance of the country.
• The IMF 's regular monitoring of economies and associated provisions of policiy advice is intended to
• identify weakness that are causing or could lead to financial or economic instability.
 SDR
SDR : SPECIAL DRAWING RIGHTS

• Introduced in 1969 to increase making liquidity in international market.

• SDR is currency code of IMF . Foreign exchange reserve is maintained in the form of XDR

• SDR's are allocated by the IMF to countries to provide liquidity to the Global Economic system.
•
• VALUATION OF SDR :
• The value of a SDR is based on a basket of key international currencies reviewed by IMF every
five years.

• DAILY VALUATION :
• Because of fluctuating exchange rates, the relative value of each countries ' currency carries
continuously. IMF sets the value of the XDR in terms of U. S Dollar every day.
 FUNCTIONS OF IMF
• Lending to maintain Balance of Payment : Provide financial assistance
• to their member countries to reduce its deficit of balance of payment and other external
• liabilities. Lendings are to be paid back in three to five years.

• BANK OF CENTRAL BANK : IMF is like a central bank of member countries.

• Every countries central bank have to hold some cash reserve in the International Monetary
Fund.

• FINANCIAL FUNCTIONS : The capital or the resources of the fund come from
two resources.
• a) Subscription or quota ofof the members nation.
• b) Borrowings

• Each member country is required to subscribe an amount equivalent to its quota. Quota on
• which payments obligations, credit facilities and voting rights of members are determined.
• Value ofof one additional vote is 10000 XDR.
• Exchange stability : It is an important functions of IMF to maintain exchange stability and to
• discourage any fluctuation in the rate of exchange.
•

• Stabilize Economies : The IMF has an important function to advise the member countries on
• Various economic and monetary matter and thereby to help stabilize their economies.

• Reducing Tarrifs : Reducing tarrifs and other restrictions to important and export between member
countries.

• General Watch : IMF is also keeping a general watch on the member countries monetaries and fiscal
• policies to ensure fluctuation of currencies.
 OBJECTIVES OF IMF

• Monetary cooperation between member countries

To reduce imbalance of balance of payment.

To promote international trade.

Provide fund or loan for international trade.

To issues outlook reports, it is based on macro economic activities.

This report is issued half yearly basis.

To control tarrifs and restrictions on international trade.

Provide subsidery loan to their member countries.

 IMF AND INDIA
• India has 8th position in quota system.
• Total Quota : SDR 4,158.20 million.

• International regulations by IMF in the filed of money has certainly contributed towards
• expansion of international trade.

• India's contribution to lending resources of IMF :

• In the London summit of Group of Twenty (G 20) , a decision was taken to triple the IMF's
• Lending capacity upto US$10 Billion.

• International Monetary Fund : has pared India's growth forecast for the just
concluded fiscal and the next two years,
• According to IMF India's present growth rate is 7.1 %
 SWOT ANALYSIS
• Strength : To build sustainable competitive advantage in international trade.
Also it control economic crisis and maintain a sustainable development.

Strong financial position and health can allow the firm to make further investment.

• Weakness : The decision making in the international monetary Fund takes too much time,

Causing expensive delay in introducing new economic policies.

• Opportunities : Reducing in the interest rates to raise the funds at lower cost easier process.

• Threats : The changing regulatory and frame work and introduction of new stricter regulations
imposed a maj6 threats to IMF. It makes compliance with legal standards more complex and
challenging for the business organization.
THANK

YOU