Banking awareness: 20 important facts about the International Monetary Fund (IMF)
The IMF is an international organization, also known as the Fund. Its main objectives are to regulate global financial relations, product financial stability, facilitate international trade, support high employment, sustainable economic growth and reduce poverty.
The IMF was formed on July 22, 1944, at the United Nations Conference in Bretton Woods, United States.
The IMF formally commenced its operations on December 27, 1945, with 29 member countries.
IMF Head Quarters Washington D.C.
IMF members are now 189 countries.
IMF’s financial year is from 1 May to 30 April.
France is the first country to borrow from the IMF.
The IMF staff is headed by the Managing Director. He also serves as the Chairman of the Executive Board.
The head of the IMF is elected once every 5 years.
The current Managing Director of the IMF is Christine Lagarde (France) since 25 July 2011.
The executive board consists of 24 directors.
The day to day functioning of the IMF is monitored by the members of its executive board with the guidance of the International Monetary and Financial Committee (IMFC).
The SDR (Special Drawing Rights) was created on July 1969. To meet a long-term global requirement, the IMF created reserve assets and allocated SDRs to participating members in proportion to its IMF quota. It is also known as Paper Gold.
If any country wants to join as a member of the IMF, then that country needs to pay membership or quota which is assigned on the basis of its economic and financial strength, national income, world trade and share in monetary gold. is.
The main resource of the IMF is its member quota.
The largest and smallest member of the IMF is the United States and Tuvalu.
IMF voting is mainly based on a quota system.
There are four emerging markets and developing countries (EMDCs) such as Brazil, China, India and Russia and are among the 10 largest shareholders in the fund.
- India is a founding member of the IMF.
- Nauru is the 189th member of the IMF.