Presentation For Presentation For The International The International Monetary FundMonetary Fund

The The

International International

Monetary Monetary

FundFund

HISTORY OF IMFHISTORY OF IMF The International Monetary Fund was created The International Monetary Fund was created

in 1944 at the Breton woods conference to in 1944 at the Breton woods conference to prevent the kinds of chain reaction in the prevent the kinds of chain reaction in the economic system that caused worlds currencies economic system that caused worlds currencies to collapse in the Great Depression of the to collapse in the Great Depression of the 1930s.1930s.

Breton wood agreement was contracted in Breton wood agreement was contracted in 1944 and IMF was created in 1946.1944 and IMF was created in 1946.

IMF Started to make service with IBRD IMF Started to make service with IBRD (International bank of reconstruction and (International bank of reconstruction and Development )in 1947.Development )in 1947.

The IMF Was Created to support orderly The IMF Was Created to support orderly international currency problems through Short international currency problems through Short term loans of Cash.term loans of Cash.

ABOUT IMFABOUT IMF IMF headquarters Is in Washington D.C,U.S.AIMF headquarters Is in Washington D.C,U.S.A Five largest shareholders are united states Five largest shareholders are united states

Japan France, United Kingdom.Japan France, United Kingdom. China,Russia,and Saudi Arabia have their own China,Russia,and Saudi Arabia have their own

Seats on the Board.Seats on the Board. 16 other Executive Directors are elected for 16 other Executive Directors are elected for

two year terms by groups of countries, known two year terms by groups of countries, known as “Constituencies.as “Constituencies.

Total quotas of $312 billion; outstanding Total quotas of $312 billion; outstanding loans of $71 billion to 82 countries.loans of $71 billion to 82 countries.

The International Monetary Fund (IMF) is an The International Monetary Fund (IMF) is an Organization of 186 countries.Organization of 186 countries.

INTRODUCTIONINTRODUCTION IMF is a forum of national economic policies IMF is a forum of national economic policies

international monetary and financial system international monetary and financial system which involves active dialogue with each which involves active dialogue with each member Country.member Country.

When there is a Country where has a serious When there is a Country where has a serious finance Problem, other countries loan the finance Problem, other countries loan the money for the poor country.IMF is a kind of money for the poor country.IMF is a kind of situation when the nation bank of country is situation when the nation bank of country is bankrupted.bankrupted.

IMF is an administrative unit that is IMF is an administrative unit that is international in nature and whose ob international in nature and whose ob objective is to regulate and administer the objective is to regulate and administer the financial system of the world.financial system of the world.

GROWTH IN IMF GROWTH IN IMF MEMBERSHIP(1945-2003)MEMBERSHIP(1945-2003)

In the Beginning 29 member In the Beginning 29 member countries .countries .

To day 186 member countries .To day 186 member countries . Staff of about 2680 persons.Staff of about 2680 persons. Two-thirds are economists in 139 Two-thirds are economists in 139

countries.countries. Headquarters in Headquarters in

Washington,D.C.Washington,D.C.

PURPOSES OF IMFPURPOSES OF IMF

IMF promote international monetary IMF promote international monetary cooperation.cooperation.

Expansion and balanced growth of Expansion and balanced growth of international trade.international trade.

IMF promote exchange rate stability .IMF promote exchange rate stability . IMF make resources of the fund IMF make resources of the fund

available to member .available to member . Foster economic growth and high levels Foster economic growth and high levels

of employment .of employment . IMF can make the price of foreign IMF can make the price of foreign

money to be safe.money to be safe.

ROLE OF IMFROLE OF IMF Focusing on its core macroeconomic Focusing on its core macroeconomic

and Financial areas of responsibility.and Financial areas of responsibility. Working in a complementary Fashion Working in a complementary Fashion

with other institutions established.with other institutions established. Collection and allocation of Reserves.Collection and allocation of Reserves. Rendering advice to member countries Rendering advice to member countries

on their international monetary affairs.on their international monetary affairs. Promoting research in various areas of Promoting research in various areas of

international economics and monetary international economics and monetary economics .economics .

ROLE OF IMFROLE OF IMF

Providing a forum for discussion Providing a forum for discussion and consolation among member and consolation among member countries. countries.

Being in the center of Being in the center of competence.competence.

FUNCTION OF IMFFUNCTION OF IMF

Surveillance ( like a doctor)Surveillance ( like a doctor)

Gathering data and assessing Gathering data and assessing economic policies of countries.economic policies of countries.

Technical Assistance (like a Teacher )Technical Assistance (like a Teacher )

Strengthening human skills and Strengthening human skills and institutional capacity of Countries.institutional capacity of Countries.

Financial Assistance (like a banker)Financial Assistance (like a banker)

Leading to countries to support Leading to countries to support reforms.reforms.

IMFIMF 186 Member States 186 Member States Board of Governors (I From each State )Board of Governors (I From each State ) Managing Director Managing Director Executive Board (24 Member )Executive Board (24 Member ) Weighted Voting System:Weighted Voting System: US Representative holds 17%of total US Representative holds 17%of total

voting Power.voting Power. 27 countries together hold 1.4%of total 27 countries together hold 1.4%of total

voting Power.voting Power. Board of Governors:one Governor from Board of Governors:one Governor from

each member country.meets once a each member country.meets once a year..year..

INDIA AND IMFINDIA AND IMF

India and the IMF has a positive India and the IMF has a positive relationship. The IMF has provided relationship. The IMF has provided Financial Assistance to Financial Assistance to Indian .Which has helped in boosting Indian .Which has helped in boosting the country's economy.the country's economy.

The IMF praised the country for it The IMF praised the country for it was able to avoid the Asian Financial was able to avoid the Asian Financial Crisis in 1999 and was also able to Crisis in 1999 and was also able to has to maintain the average rate of has to maintain the average rate of growth of it’s economy.growth of it’s economy.

INDIA AND IMFINDIA AND IMF

The Managing Director of The Managing Director of International monetary fund Rodrigo International monetary fund Rodrigo De rato visited India in may 2005.De rato visited India in may 2005.

In 2005 the IMF said that the budget In 2005 the IMF said that the budget of India is very positive for it points of India is very positive for it points that the economy of the country will that the economy of the country will grow at the rate of 6.7%.grow at the rate of 6.7%.

INDIA AND IMFINDIA AND IMF

International monetary fund said that International monetary fund said that the reasons behind the economy growth the reasons behind the economy growth of India are that the RBI has been able of India are that the RBI has been able to control inflation and has also to control inflation and has also handled its monetary policies very handled its monetary policies very skillfully.skillfully.

The IMF has suggested that India can The IMF has suggested that India can become a financial super power a become a financial super power a financial super power by bringing in financial super power by bringing in more reforms in its economic policies more reforms in its economic policies that will increase its growth rate to 8%.that will increase its growth rate to 8%.

CONCLUSIONCONCLUSION

The IMF Works to foster global The IMF Works to foster global growth and economics growth and economics stability .It provides policy and stability .It provides policy and Financing to members in Financing to members in economic difficulties and also economic difficulties and also works with developing nations to works with developing nations to help them achieve help them achieve macroeconomic stability and macroeconomic stability and reduce poverty.reduce poverty.