What does the IMF do?

What is the International Monetary Fund?
The International Monetary Fund (IMF) is an international organization that provides financial assistance and advice to its member countries. The IMF creates and maintains the international monetary system through which international payments among countries take place. In effect, the IMF helps governments by lending them public funds.
What is its mission?
The IMF seeks to foster global monetary cooperation, secure financial stability, facilitate international trade and provide sustainable economic growth.
Who makes up the IMF?
The IMF is a specialized agency of the United Nations with 188 member countries. 24 executive directors representing all of its member countries oversee it. The IMF was created in 1945 and has its headquarters is in Washington, DC.
What does it do?
The IMF offers its assistance in three ways:·

  • The IMF reviews global economic and financial policies and then provides advice to individual countries, regions, and global economies as a whole.
  • The IMF provides financial assistance and gives loans to countries with collapsed economies or balance of payment problems such as those with severe devaluation of its currency or a major depletion of its foreign reserves.
  • The IMF gives technical assistance and training in areas such as tax policies, exchange rate policies, and banking and financial regulations to help member countries strengthen their capacity to design and implement effective economic policies.
How does it work?
The IMF gets its funding from quota subscriptions paid by the member states. The size of each quota is determined by how much each government can pay according to the size of its economy. The quota then determines the weight and voting rights each country has within the IMF – as well as how much financing it can receive.The IMF then issues an international reserve asset known as the special drawing rights (SDR) as its form of payment. The SDR is a unit of account based on a basket of currencies including the US dollar, Japanese yen, Euro, and British pound by which member states can exchange with one another in order to settle international accounts. Each member country is assigned a certain amount of SDR based on how much quota the country contributes to the IMF. Countries issued with loans must also implement the structural adjustment policies and economic reform program prescribed by the IMF and make it a priority to pay back what it has borrowed.
How much can the IMF lend?
In total, the IMF has USD 362 billion in quotas and USD 1 trillion of additional resources to borrow.
Which countries are the biggest borrowers to date?
Greece, Portugal, Ireland, Ukraine
Which countries have the biggest precautionary loans to date?
Mexico, Poland, Colombia, Morocco
How is the IMF responding to the current debt crisis In Europe and the United States?
Unlike in previous years when the IMF was the dominant and preferred lender to flailing economies in Asia and Latin America, the IMF has had a somewhat minor role in the European bailout. This, despite the Fund’s commitment to lend out $268 billion of its resources.In light of this, the IMF has been calling for reforms and new policies:

  • An increase of the IMF’s quota capital to $677 billion
  • The shrinking of its line of credit with member states which must be renewed every 6 months
  • A revisit of its voting rights where emerging markets like Brazil, China and India will have more shares. Currently, these countries have only 8% of the voting rights despite contributing 19% of the global output.

 

Related articles on the IMF:

10 thoughts on “What does the IMF do?

  1. Unquestionably believe that which you stated. Your favorite reason appeared to be on the web the simplest thing to be aware of.
    I say to you, I certainly get irked while people consider worries that they plainly do not know
    about. You managed to hit the nail upon the top and also defined out the whole thing
    without having side effect , people can take a signal.
    Will likely be back to get more. Thanks

  2. I’ve been exploring for a bit for any high-quality articles or blog posts on this sort of area . Exploring in Yahoo I finally stumbled upon this website. Studying this info So i am satisfied to exhibit that I’ve a very excellent uncanny feeling I discovered exactly what I needed. I such a lot for sure will make sure to do not forget this web site and give it a look on a continuing basis.

  3. This design is incredible! You most certainly know how to keep a reader entertained.
    Between your wit and your videos, I was almost moved to start
    my own blog (well, almost…HaHa!) Great job. I really loved what
    you had to say, and more than that, how you presented it.

    Too cool!

  4. Good post. I discover something extra challenging on different blogs everyday. It is going to always be stimulating to read content material from other writers and practice slightly something from their shop. I’d prefer to use some with the content material on my weblog no matter if you do not mind. Natually I’ll give you a link in your web weblog.

  5. Hello Web Admin, I noticed that your On-Page SEO is is missing a few factors, for one you do not use all three H tags in your post, also I notice that you are not using bold or italics properly in your SEO optimization. On-Page SEO means more now than ever since the new Google update: Panda. No longer are backlinks and simply pinging or sending out a RSS feed the key to getting Google PageRank or Alexa Rankings, You now NEED On-Page SEO. So what is good On-Page SEO?First your keyword must appear in the title.Then it must appear in the URL.You have to optimize your keyword and make sure that it has a nice keyword density of 3-5% in your article with relevant LSI (Latent Semantic Indexing). Then you should spread all H1,H2,H3 tags in your article.Your Keyword should appear in your first paragraph and in the last sentence of the page. You should have relevant usage of Bold and italics of your keyword.There should be one internal link to a page on your blog and you should have one image with an alt tag that has your keyword….wait there’s even more Now what if i told you there was a simple WordPress plugin that does all the On-Page SEO, and automatically for you? That’s right AUTOMATICALLY, just watch this 4minute video for more information at. Seo Plugin

  6. What’s Happening i’m new to this, I stumbled upon this I’ve found It absolutely useful and it has aided me out loads. I’m hoping to contribute & aid other users like its helped me. Good job.

Leave a Reply