Dakshata Gadiya MBA II 14

WHAT IS IMF
It is an organization of 186 countries , working to foster global monetary cooperation , secure financial stability , international trade , promote high employment and sustainable economic growth and reduce poverty .
The IMF is the most detailed attempt to organize the conduct of international monetary affairs.

IMF
Established on December 27, 1945 with 29 countries. Began financial operations on March 1, 1947. Headquarters in Washington D.C. The IMF has a membership of 185 countries. All members of the United Nations Organization, except the former USSR, are members of the IMF. The IMF provides financial assistance to members to help them to correct balance of payments problems in a manner that promotes sustained growth.

 Promote international monetary cooperation. Shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members. Facilitate the expansion and balanced growth of international trade. Promote Exchange stability and maintain orderly exchange arrangements among members. Assist in establishing a multilateral system of payments.

MANAGEMENT OF IMF
BOARD OF GOVERNORS EXECUTIVE BOARD MANAGING DIRECTOR STAFF OF INTERNATIONAL CIVIL SERVANTS

Growth in IMF Membership

In the beginning 29 member countries Today,184 member countries Staff of about 2680 persons Two-thirds are economists in 139 countries Headquarters in Washington, D.C.

FUNCTIONS OF IMF
It serves as a short term credit institution. The fund provides a mechanism for improving short term balance of payments position. The fund provides machinery for international consultations. It provides a reservoir of the currencies of the members countries and enables members to borrow one anothers currency. It promotes orderly adjustment of exchange rates to promote exchange stability.

Purposes
Promote international monetary cooperation, exchange stability, and orderly exchange arrangements Foster economic growth and high levels of employment Temporary financial assistance to countries to help the balance of payments adjustments

BENEFITS TO INDIA
Freedom to Rupee Membership of the World bank Importance of India in international field Technical advice and training

The current relationship between IMF and India

The relationship between the IMF and India has grown strong over the years. In fact, the country has turned into a creditor to the IMF. India and IMF must continue to boost their relationship this way, as it will prove to be advantageous for both. The International Monetary Fund, or IMF, predicted lower growth in India and economic contractions in the US, Japan and euro region next year, calling for further interest rate cuts and fiscal stimulus. India recorded a GDP growth of 9.8% in 2006 and 9.3% in 2007. Its estimate for Indias growth in 2009 is now 6.3%.