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International Monetary Fund (IMF)

MADHAV BHATE 63 MIHEER SHINDE - 107ROHIT RUKE - 101HARSH VED - 119

It is an organization of 186 countries, working to foster global monetary co-operation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty.IMF is the most detailed attempt to Organize the conduct of International Monetary Affairs.What is imf ?STRUCTURE OF Who runs IMF ?There are 2 types of members

ORGINAL MEMBERS

Ordinary members

(Bank has the authority to suspend any member and similarly every member is free to resign.)MEMBERSHIPQUOTAS AND THEIR FIXATIONON JOINING , THE CONTRIBUTION SHOULD BE 25% IN FORM OF MAJOR CURRECY(USD,GBP,EURO) & REST 75% IN THEIR DOMESTIC CURRENCY.STRONG CURRECNCY IS SELSCTED EVERY 3MONTHS BASED ON ITS VALUATION.FUND BORROWINGSResources of the Fund

INTERNATIONAL MONETORY COOPERATIONTO FACILITATE EXPANSION AND BALANCED GROWTH OF INTERNATIONAL TRADETO PROMOTE EXCHANGE STABILITYGENERATING HIGHER EMPLOYMENT AND INCOME ABOLITION OF OF EXCHANGE RESTRICTION

OBJECTIVES OF THE IMFDetermining the rate of exchange by every countryFund Lending Credit Tranches A Central Banks BankTrading and Technical AssistanceConsultancy Role

MAIN FUNCTIONS OF THE FUND

INTERNATIONAL MONETARY COOPERATIONEXCHANGE STABILITYCHECKING COMPETITIVE DEPRECIATIONINCREASED IN CAPITAL RESOURCESEXPANSION OF TRADEGURANTEE AGAINST COMPETITIVE DEVALUATIONAchievements of the IMFMany observers comment on the fact that the IMF has a one size fits all mentality, that whatever the situation the IMF prescribes basically the same set of policies.IMF does not monitor the impact of its decision on the poor.IMF has no effective authority over the domestic economic policies of its members

CRITICISMFinancial assistance from the fund loan given by IMF to INDIA

Advantage to INDIA of the Membership of IMF YEAR19911994199619982000IN MILLION $2,6235,0402,37466426Helps in foreign exchange crisis Freedom from sterling Membership of the world bankEconomic consultation