International Monetary Fund

[dilip1456]

The International Monetary Fund (IMF), is a supranational lending institution whose primary mission lies in furnishing short-term credit for countries suffering balance of payments deficits. Balance of payment deficits occur when a country’s outflow of money from transactions with foreign countries exceeds its inflow. Like its sister institution, the World Bank, the IMF was born of the Breton Woods Conference. That 1944 meeting of international monetary officials put foreign exchange markets under a system of fixed exchange rates—a system that lasted until 1971. The IMF began operations in 1946 and in 1964 it founded its headquarters in Washington, D.C. Although the mission of the World Bank lay in financing development and reconstruction projects, the IMF bore responsibility for loaning foreign currency reserves to countries on a short-term basis.

 

[jb100]

Nice information about the history and birth of International Monetary Fund (IMF).Of course IMF functions as a short term lenders to the countries who are in "Balance of Payment crisis". But who are the major contributors of IMF?Is there any compulsory membership for all nations with in its purview?

 

[pkc3000]

International Monetoary Fund


Hey dilip thanks for such important information about IMF. Initially it was established with 45 countries in 1944 with an aim to systematize and stablize to global exchange rate. As far as I am concerned now it is having 186 member countries. It is working as global monetary cooperation IMF's influence is steadily increasing . Any countries may apply for IMF;s membership. To accept or not to accept any country as member of IMF fully lies on Board of executives. Major decisions required 85% voting power. I think India is having 1.91 % of quota. IMF is monitoring the global financial activities of its member countries and world bank is its sister concern. The money of IMF is mainly used for reconstruction & development purpose.