imf
DESCRIPTION
International Monetary FundTRANSCRIPT
Headquarters Washington D C USA
Members 185 countries
Managing Director Dominique Strauss-Kahn
History of IMF
bull IMF was introduced as there arouse a need for International cooperation in economics trade and balance of payment affairs
bull United States made a proposal for establishment of International Stabilization Fund It was known as White plan
bull UK proposed establishment of International Clearing Union It was known as Keynes plan
bull IMF came in to existence by the joint plan prepared in 1944
bull Thus IMF came in to existence to promote economic and financial co-operation among the member countries
EMERGENCE OF IMFbull The International Monetary Fund was formally created in July
1944 during the United nations Monetary and Financial Conferencebull The IMF was formally organized on December 27 1945 when the first 29 countries signed its Articles of Agreement The statutory purposes of the IMF today are the same as when they were formulated in 1944 Headquarters bull IMF is a post-war international monetary institution
bull Growth in IMF Membership 1945 - 2005(number of countries)
Organizational structure
BOARD OF GOVERNORS
EXECUTIVE BOARD OF DIRECTORS
MANAGING DIRECTOR
IMF SECRETARIAT
bullInterim CommitteebullDevelopment committee
Key Members
IMF Member Country Quota Millions of SDRs
Quota Percentage
Australia 32364 149
Belgium 46052 212
U S A 371495 1709
United Kingdom 107385 494
India 41583 191
Brazil 30361 14
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
History of IMF
bull IMF was introduced as there arouse a need for International cooperation in economics trade and balance of payment affairs
bull United States made a proposal for establishment of International Stabilization Fund It was known as White plan
bull UK proposed establishment of International Clearing Union It was known as Keynes plan
bull IMF came in to existence by the joint plan prepared in 1944
bull Thus IMF came in to existence to promote economic and financial co-operation among the member countries
EMERGENCE OF IMFbull The International Monetary Fund was formally created in July
1944 during the United nations Monetary and Financial Conferencebull The IMF was formally organized on December 27 1945 when the first 29 countries signed its Articles of Agreement The statutory purposes of the IMF today are the same as when they were formulated in 1944 Headquarters bull IMF is a post-war international monetary institution
bull Growth in IMF Membership 1945 - 2005(number of countries)
Organizational structure
BOARD OF GOVERNORS
EXECUTIVE BOARD OF DIRECTORS
MANAGING DIRECTOR
IMF SECRETARIAT
bullInterim CommitteebullDevelopment committee
Key Members
IMF Member Country Quota Millions of SDRs
Quota Percentage
Australia 32364 149
Belgium 46052 212
U S A 371495 1709
United Kingdom 107385 494
India 41583 191
Brazil 30361 14
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
EMERGENCE OF IMFbull The International Monetary Fund was formally created in July
1944 during the United nations Monetary and Financial Conferencebull The IMF was formally organized on December 27 1945 when the first 29 countries signed its Articles of Agreement The statutory purposes of the IMF today are the same as when they were formulated in 1944 Headquarters bull IMF is a post-war international monetary institution
bull Growth in IMF Membership 1945 - 2005(number of countries)
Organizational structure
BOARD OF GOVERNORS
EXECUTIVE BOARD OF DIRECTORS
MANAGING DIRECTOR
IMF SECRETARIAT
bullInterim CommitteebullDevelopment committee
Key Members
IMF Member Country Quota Millions of SDRs
Quota Percentage
Australia 32364 149
Belgium 46052 212
U S A 371495 1709
United Kingdom 107385 494
India 41583 191
Brazil 30361 14
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
bull Growth in IMF Membership 1945 - 2005(number of countries)
Organizational structure
BOARD OF GOVERNORS
EXECUTIVE BOARD OF DIRECTORS
MANAGING DIRECTOR
IMF SECRETARIAT
bullInterim CommitteebullDevelopment committee
Key Members
IMF Member Country Quota Millions of SDRs
Quota Percentage
Australia 32364 149
Belgium 46052 212
U S A 371495 1709
United Kingdom 107385 494
India 41583 191
Brazil 30361 14
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Organizational structure
BOARD OF GOVERNORS
EXECUTIVE BOARD OF DIRECTORS
MANAGING DIRECTOR
IMF SECRETARIAT
bullInterim CommitteebullDevelopment committee
Key Members
IMF Member Country Quota Millions of SDRs
Quota Percentage
Australia 32364 149
Belgium 46052 212
U S A 371495 1709
United Kingdom 107385 494
India 41583 191
Brazil 30361 14
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Key Members
IMF Member Country Quota Millions of SDRs
Quota Percentage
Australia 32364 149
Belgium 46052 212
U S A 371495 1709
United Kingdom 107385 494
India 41583 191
Brazil 30361 14
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Objectives of IMF
bull To avoid the competitive devaluation and exchange
control
bull To establish and maintain currency convertibility
bull To develop multilateral trade and payments
bull To promote international monetary co-operation through
a permanent institute
bull To facilitate the expansion of balanced growth of
international trade
bull To provide exchange stability
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Objectives Conti
bull To maintain orderly exchange arrangements among
members and to avoid competitive exchange
depreciation
bull To assist in the establishment of a multilateral system of
payments in respect of current transactions
bull To lend confidence to members by making the funds
resources available to them under adequate safeguards
bull To shorten the duration and lessen the degree of
disequilibrium in the international balance of payments of
members
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Functions of IMF
bull lsquoGuardian of good conductrsquo in the area of Balance of payments
bull Reducing tariffs and other trade restrictionsbull Provides technical advicebull Provides short term financial assistance to its member
countries bull Provides machinery for orderly adjustment of
exchange ratesbull Reservoir of currenciesbull Lending institution of foreign currencies bull
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
bull Machinery for altering the par values of the
currency of a member country
bull International consultancy
bull Conducts research studies and publishes report
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
How Does IMF Get Its Money
bull Mainly from the Quotas that countries deposit when
they join
bull The Quotas reflects the size of each members
economy
bull Under some Circumstances it gets money from
Trusts
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Role of IMF
Lending- Providing financial assistance to low-income
countries experiencing protracted BOP through-
bull Poverty Reduction And Growth Facility(PRGF)
bull Heavily Indebted Poor Countries
Initiative(HIPC)
bull Multilateral Debt Relief Initiative (MDRI)
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Technical Assistance- For development of productive
resources of member countries through help in Policy
Making and Training
bull Regional Technical Assistance Center at
Pacific Caribbean and Africa
bull It accounts for about one-fifth of IMFrsquos operating budget
bull Bilateral donors of technical assistance program-
Australia China Canada France Germany India Japan
Russia Luxembourg Portugal US UK etc
bull Multilateral Donors- African Development Bank Arab
Monetary Fund Asian Development Bank etc
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Ghana discovery of oil field
Nigeria natural gas
Developing countries combat poverty and growth
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Surveillance- Help in providing policy advise to low
income countries by-
i Establishing Economic Frameworks that support
sustained growth and poverty reduction
ii Identify and manage sources of macroeconomic risk and
vulnerabilities
iii Strengthen institutions and policies that underline sound
macroeconomic management
Progress report is annually published in Global Monitoring
Report by IMF and World Bank
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Balance of Payment Difficulties
bull It occurs due to-
bull Fiscal Deficit
bull High Level of external andor public debt
bull Exchange rate fixed at inappropriate levels
bull Natural Disasters or Armed conflicts
bull It causes-
bull Countryrsquos Currency Depreciate rapidly
bull International goods expensive
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Balance of Payment Status
bull Worlds payment balances in 2005 (States in surplus in blue (dark blue = Euroland) States in deficit in red)
bull And also in here
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
How IMF helps
bull Through IMF Lending
bull Through IMF Loan
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
IMF Helps Ghana Learn From Others on Inflation Targets
bull February 14 2008
bull The IMF is sharing its cross-country experience in inflation targeting with Ghana as the country adapts its monetary policy and aims to reach middle-income status by 2015
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
IMF to Back Liberia With Debt Relief New Finance
bull March 20 2008
bull In a major move to back Liberias economic recovery after a ruinous 14-year period of civil war the IMF has announced a series of measures to support it with debt relief and new financing
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Exchange rate
bull The exchange rates between two countries specifies how
much one currency is worth in terms of other
Ex- JPY 102 = USD 1
amp USD 1= 4135 INR
Spot exchange rate refers to the current exchange rate
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
bull Free or Pegged
If a currency is free floating its exchange rate is allowed to vary against that of other currencies and is determined by the market forces of supply and demand
bull Nominal amp real exchange rates
The nominal exchange rate is the price in domestic currency of one unit of foreign currency
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
SPECIAL DRAWING RIGHTS(SDR)
bull is an international reserve asset created by the IMF in 1969 to supplement the existing official reserves of member countries
bull SDRs are allocated to member countries in proportion to
their IMF quotas
bull Its value is based on a basket of key international currencies
bull SDRs are popularly known as ldquopapergoldrdquo
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
WHY SDR WAS CREATEDbull SDR was created by the IMF in 1969 to support the
Bretton Woods fixed exchange rate system bull International supply of two key reserve assetsmdash gold
and the US dollarmdashproved inadequate for supporting the expansion of world trade and financial development
bull A few years later the Bretton Woods system collapsed and the major currencies shifted to a floating exchange rate regime
bull Today the SDR has only limited use as a reserve asset
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
SDR valuation
bull The value of the SDR was initially defined as equivalent to 0888671 grams of fine goldmdashwhich at the time was also equivalent to one US dollar
bull After the collapse of the Bretton Woods system in 1973 however the SDR was redefined as a basket of currenciestoday consisting of the euro Japanese yen pound sterling and US dollar
bull The basket composition is reviewed every five years to ensure that it reflects the relative importance of currencies in the worlds trading and financial systems
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
The SDR Interest Ratebull The SDR interest rate provides the basis for calculating
the interest charged to members on regular (non-concessional) IMF loans
bull The SDR interest rate is determined weekly
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
SDR ALLOCATIONbull Under its Articles of Agreement the IMF may allocate SDRs to
members in proportion to their IMF quotas
bull Each member country of the IMF is assigned a quota based broadly on its relative size in the world economy
bull Indiarsquos quota ndash 41582 millions US$ of SDRs 191 of total
bull If a members SDR holdings rise above its allocation it earns interest on the excess conversely if it holds fewer SDRs than allocated it pays interest on the shortfall
bull 2 types of allocations ndash 1) general allocations of SDRs 2) special one time allocation of SDRs
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
EMERGENCY ASSISTANCEbull The IMF provides emergency assistance to help
members countries during natural disasters and conflicts
bull Since 1962 38 countries have received aid upto US $29 billion from IMF
bull Emergency assistance loans are subject to the basic rate of charge and should be repaid within 35 to 5 yrs
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Countries that received emergency assistance since 1995
Country Year Event Amount(US
$MILLION)
BANGLADESH 1998 FLOODS 1382
DOMINICAN 1998 HURRICANE 559
TURKEY 1999 EARTHQUAKE 5010
GRENADA 2003 HURRICANE 40
MALDIVES 2005 TSUNAMI 63
SRILANKA 2005 TSUNAMI 1584
DOMINICAN 2008 HURRICANE 33
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Role of IMF in INDIA
Joined IMF on 27 DEC 1945
Subscribes to the IMFrsquos special data dissemination standard
India borrowed SDR 39 billion (1981-82)SDR 22 billion (1991-93)
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Technical assistance
bull In recent years the fund has provided India in government securities foreign exchange market public expenditure management amp tax amp custom administrations
bull Current scenario
SDR (Net cumulative allocation)- 68117 m
Holdings - 678 m
Outstanding purchases amp loans - None
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Where do our interest lie
bull Our monetary policy framework is not consistent we need to build a consistent
framework of monetary policy
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Our strength
bull By James Gordon (Washington based multilateral institutions representative)
ldquoIndia does not need any financing from IMF considering that the country had crossed $103 billion of FOREX reservesrdquo
Emerging market economy Feb 13 2004
Acc to indiatimes - India borrowed from IMF in crisis of 1990rsquos amp fully repaid its loan
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Conthellip
bull Acc to finance ministry source FOREX crossed $ 100 billion and now providing money to ldquonation buildingrdquo countries like
bull $ 43 m to Indonesia$ 350 m to Brazil$ 05 m to Burundi
So now India has that potential to be include into IMF financial transactions plan (40 countries)
By P Uaidynathan Iyer in New Delhi Jan 19 2004
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
IMF and the World Bankbull IMF and World bank both were created at an
International Conference convened in Bretton Woods
bull IMF promotes international monetary cooperation and provides policy advice and technical assistance to maintain strong economies
bull The World bank promotes long-term economic development and poverty reduction to help countries reform particular sectors or implement specific projects
bull IMF and World bank collaborate regularly and at many levels on assistance to member countries and are involved in several joint initiatives
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Criticisms of IMF
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Case
bull Iraqi Oil Crisis
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
bull Common Criticisms of the IMF
bull 1048708 The IMF has created an immoral system of modern day
colonialism that drains the poor
bull 1048708 The IMF serves wealthy countries and Wall Street
bull 1048708 The IMF is a secretive institution with no accountability
bull 1048708 IMF policies promote corporate welfare
bull 1048708 IMF Policies hurt the environment
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-
Thank You
- Slide 1
- Slide 2
- Slide 3
- EMERGENCE OF IMF
- Slide 5
- Organizational structure
- Key Members
- Slide 8
- Slide 9
- Slide 10
- Slide 11
- How Does IMF Get Its Money
- Slide 13
- Slide 14
- Slide 15
- Slide 16
- Slide 17
- Balance of Payment Status
- How IMF helps
- IMF Helps Ghana Learn From Others on Inflation Targets
- IMF to Back Liberia With Debt Relief New Finance
- Slide 22
- Slide 23
- Slide 24
- WHY SDR WAS CREATED
- SDR valuation
- The SDR Interest Rate
- SDR ALLOCATION
- EMERGENCY ASSISTANCE
- Countries that received emergency assistance since 1995
- Role of IMF in INDIA
- Technical assistance
- Where do our interest lie
- Our strength
- Conthellip
- Slide 36
- Criticisms of IMF
- Case
- Slide 39
- Thank You
-