Presentation

on IMF
and
its working

Presented by
Sandhya
Roll No-1430220025
M.A. ECO (FINAL)
Govt. COLLEGE Bhiwani
 Introduction
 Current Information
 Establishment
 Membership
 Conditionality
 Functions
 Objectives
 Achievements
 Failures
 IMF and India
 Reference
 What is IMF (International
Monetary Fund)
The International Monetary Fund (IMF) is an organization
working to foster global monetary cooperation, of 186
countries:

Secure Facilitate Promote

financial International high
stability trade employment

Reduce
Sustainable
poverty
economic
around the
growth
world
HEADQUARTER
Washington
D.C.
USA

MANAGING DIRECTOR

Christine Lagarde
 IMF was founded on 27th december,1945.During the
closing years of World War Second,difference
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 in 1944, at
Bretton Woods in America.
 It was attended by the representatives of 44
countries . India also participated therein
 It was decided in this Conference to set up IMF for
the economic development of all countries
 There are two types of members of the Fund.

 ORIGINAL MEMBERS – All those counries whose

representatives took part in Bretton Woods
Conference and who agreed to be the member of the
fund prior to 31st Dec,1945, are called Original
Members
2) ORDINARY MEMBERS – All those countries who
becomes its member subsequently are called Ordinary
Members.

Any country can cease to be its member after giving a

notice in writing to that effect.Fund can be terminate
the membership of such a country which does not
observe its rules .
 IMF lends to its member countries,ensuring that,
members are pursuing policies that will improve
external payment problems
 Commitments to implement corrective measures
 To repay in a timely manner
1:-Exchange Stability:-The first important function of IMF is to
maintain exchange stability and thereby to discourage any fluctuations
in the rate of exchange.
2:-Eliminating BOP Disequilibrium:-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.
3:-Stabilize Economies:-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:-Credit Facilities:-IMF is maintaining various borrowing and credit
facilities so as to help the member countries in correcting
disequilibrium in their balance of payments.
5:- Maintaining Balance Between Demand and Supply of
Currencies:-IMF is also entrusted with important function to maintain
balance between demand and supply of various currencies.
1:- International Monetary Co-Operation:-The most important
objective of the Fund is to establish international monetary co-
operation amongst the various member countries through a permanent
institution that provides the machinery for consultation and
collaborations in various international monetary problems and issues.
2:-Balanced Growth of Trade:-IMF has also another important objective
to promote international trade so as to achieve its required expansion
and balanced growth.
3:- Multilateral Trade and Payments:-To establish a multilateral trade
and payment system in respect to current transactions between
members in place of the old system of bilateral trade agreements was
another important objective of IMF.
4:-Balanced Growth:-Another objective of IMF is to help the member
countries, especially the backward countries, to attain balanced
economic growth by exchange the level of employment.
 International Monetary Cooperation
 Reconstruction of European Countries
 Multilateral System of Foreign Payments
 Increase in International Liquidity
 Increase in international Trade
 Special Aid to Developing Countries
 Providing Statistical Information
 Helpful in Times of Difficulties
 Easiness & Flexibility in Making International
Payments
 The IMF has failed in respect of achieving the basic
objectives of international exchange stability.
 The IMF has also failed to establish a stable and sound
international monetary system and thereby
experiences serious monetary crisis arising out of
rapidly fluctuating exchange rates.
 The Fund has also failed to persuade the member
countries to eliminate exchange controls and other
restrictions on foreign trade.
 The IMF has also failed to bring the free convertibility
of currency of different countries
 The IMF has also failed to remove the various
restrictions of trade imposed by different countries
 In respect of problems of long term disequilibrium in
the balance of payments faced by different countries,
the IMF can provide only short term credit facilities.
India is a founder member of IMF. Earlier India was made a
permanent Executive Director of the Board of Directors.India
joined International Monetary Fund(IMF) on 27 December,
1945.The relationship between India and IMF dates back to
the time when India needed economic reform packages to
strength its international reputation and fiscal
policy.Whenever India underwent balance of payment
crises,it sought the help of IMF and in turn the
internationally recognized reserve willingly helped India to
overcome the difficulties.
www.yourarticlelibrary.com
www.economicdiscussion.net
www.investopedia.com
https://www.imf.org
http://en.m.wilipedia.org
http://www.thebalance.com