International Monetary Fund


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International Monetary Fund

(IMF), specialized agency of the United Nations, established in 1945. It was planned at the Bretton Woods Conference (1944), and its headquarters are in Washington, D.C. There is close collaboration between it and the International Bank for Reconstruction and DevelopmentInternational Bank for Reconstruction and Development (IBRD)
(IBRD), independent specialized agency of the United Nations, with headquarters at Washington, D.C.; one of five closely associated development institutions (also including the International Center for Settlement of
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. Its primary mission is to ensure stability in the international monetary system. The IMF provides policy advice and financing to member countries with economic problems. The organization, using a fund subscribed by the member nations, purchases foreign currencies on application from its members so as to discharge international indebtedness and stabilize exchange rates. The IMF currency reserve units are called Special Drawing RightsSpecial Drawing Rights
(SDRs), type of international monetary reserve currency established (1968) by the International Monetary Fund (IMF). Created in response to worries concerning the limitations of gold and dollars as the sole means of settling international accounts, SDRs
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 (SDRs); from 1974 to 1980 the value of SDRs was based on the currencies of 16 leading trading nations. Since 1980 it has been reevaluated every five years and based on the relative international economic importance of the British pound sterling, Chinese yuan (added in 2016), the European Union euro (formerly the French franc and German mark), the Japanese yen, and the U.S. dollar. To facilitate international trade and reduce inequities in exchange, the fund has limited power to set the par value of currencies. Members are provided with technical assistance in making monetary transactions.

In 1995 the fund moved to increase disclosure requirements of countries borrowing money and at the same time created an emergency bailout fund for countries in financial crisis. IMF was criticized in 1998 for exacerbating the Asian financial crisis, through the fund's decision to require Asian nations to raise their interest rates to record levels. During the international financial crisis of the early 21st cent., the IMF provided loans and access to credit of more than $100 billion to developing countries that were affected by falling demand for their exports and other financial problems. IMF support and financing was also critical to financial rescue plans for several European Union members in the early 2010s. Changes effective in 2016 raised the status of the four major emerging market nations, Brazil, China, India, and Russia, including them among the IMF's top ten shareholders. The fund is ruled by a board of governors, with one representative from each nation. The board of governors elects an executive board of 24 representatives to direct regular operations; the executive board selects and is chaired by the managing director, who also heads the IMF's staff. There are 189 members in the IMF.

Bibliography

See studies by H. G. Grubel (1970), T. Agmon et al., ed. (1984); R. D. Hormats (1987), T. Ferguson (1988), E. P. McLellan, ed. (2002), D. Vines and C. L. Gilbert, ed. (2004), E. M. Truman, ed. (2006), G. Bird (2003), G. Bird and D. Rowlands, ed. (2 vol., 2007), and E. Conway (2015).

References in periodicals archive ?
The International Monetary Fund chief will participate in an economic conference, featuring central bankers and other officials from ASEAN countries, focused on new growth models and adjusting to rapidly changing technologies.
In early April, Iran agreed to increase its share (quota) of the International Monetary Fund.
He voiced BAB's pride in being keen to assume its responsibilities towards ensuring the success of the Annual Meetings of the International Monetary Fund and the World Bank Group, as well as in contributing to the efforts exerted by the organisers in this regard.
SOUNDBITE (English) Christine Lagarde, Managing Director, International Monetary Fund (IMF):
Board of Governors of the International Monetary Fund (IMF) approved a package of reforms of the Fund's quotas and governance.
He said, in a report he presented during the first sitting of the second meeting of the Bloc of the African Governors at the Group of World Bank and International Monetary Fund with participation of the African Ministers of Finance and Governors of Central Banks, this growth reflected the growing role being played by Africa in support of global economy.
9 per cent inThe International Monetary Fund (IMF) has Qatar had the highest growth forecast for high growth rate to large public investment cent on the back of rising real estate prices and the Expo 2020 win.
supplementary foreign exchange reserve assets defined and maintained by the International Monetary Fund (IMF).
Brussels/Athens: Greece has three days to reassure Europe and the International Monetary Fund it can deliver on conditions attached to its international bailout in order to receive the next tranche of aid, four euro zone officials said yesterday.
Summary: AMMAN - The International Monetary Fund has approved to provide Jordan with $385 million, which is the second installment of a stand-by credit line to the country, to help finance national projects.
Cyprus, the European Union and the International Monetary Fund reached deal in Brussels in the early hours of Monday morning aimed at preventing the bankruptcy of its main banks and a possible euro exit.
The International Monetary Fund (IMF) has said that the cost of bank rescues in the European Union has to be spread wider.

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