IMF = international monetary fund

Posted: July 13, 2010 in INO
  1. IMF is an international organization.
  2. it was established on July/22/1944 by the articles of agreement signed at the UN monetary financial conference held at bretton woods USA, effective from December/27/1945.
  3. but it started its operations on march/1/1947.
  4. presently the number of member countries of the IMF is 182.

i)                    the IMF become a UN specialized agency by an agreement with ECISOC in 1947.

ii)                  The HQs of IMF situated at Washington DC USA

Objectives:

  1. to promote international monetary cooperation through a permanent situation which provides the machinery for consultation & collaboration on international monetary problems.
  2. to ensure balanced international trade
  3. to promote exchange rate stability
  4. to maintain orderly exchange arrangements among members.
  5. to grant economic assistance to member countries for eliminating the adverse imbalance in BoP
  6. to minimize imbalances in quantum & duration of international trade.

Administration:

  1. the IMF operates through :
    1. board of governors
    2. board of executive directors
    3. interim committee on the international monetary system (IMS)
    4. managing director & staff.
  2. IMF is controlled & managed by board of governors.
  3. each member country nominates a governor.
  4. each governor is allotted a number of votes which is determined by the ‘quota’ allotted to the respective country in the capital of IMF.
  5. each governor has got the right of 250 votes on the basis of the membership & one additional vote for each SDR(special drawing rights) 1,00,000 quota.
  6. the addition of these two types of votes becomes the actual voting right of the member country.
  7. India has the 13th place in IMF general quota.
  8. every IMF member is required to subscribe to the IMF an amount equal to its quota.
  9. the quota of a member is largely determined by its economic position relative to other members.
  10. an amount not exceeding 25% of the quota is to be paid, in reserve assets, the balance in the member’s own currency.

11. the members with the largest quotas are:

  1. USA (1st position)
  2. Germany & Japan (joint 2nd)
  3. France & the UK (joint 4th)
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