International Monetary Fund (IMF),
Definition of International Monetary Fund (IMF):
The International Monetary Fund (IMF) is an international organization that promotes global economic growth and financial stability, encourages international trade, and reduces poverty. Quotas of member countries are a key determinant of the voting power in IMF decisions. Votes comprise one vote per 100,000 special drawing right (SDR) of quota plus basic votes. SDRS are an international type of monetary reserve currency created by the IMF as a supplement to the existing money reserves of member countries.
UN specialized agency established in 1944 under Bretton Woods system to help prevent unstable exchange rates and competitive devaluations of pre-Second World War Western economies. It has since evolved into an organization of 184 countries focused on preventing crises in international monetary system via (1) surveillance through monitoring of national economies and economic policies, (2) medium-term loans to tide over balance-of-payment problems, and (3) technical assistance in formulating and administering monetary, exchange rate, and taxation policies, central bank operations, etc. Governed by a board of governors drawn from each member country, its day to day decisions are taken by a 24-member board who have voting-power in proportion to their respective countrys economic strength (and not on the basis of one-country, one-vote practice). The US (with about 18 percent of the voting-power), UK, France, Germany, and Japan are the most prominent members, followed by China, Russia, and Saudi Arabia. The other 16 members are elected from groups of countries called constituencies. IMF operates more like a credit union than an investment bank because its capital (currently about $300 billion) is contributed by its members based on a quota proportional to the members economic strength. Members can borrow against this contribution, but lending is conditional on the borrowers pledge to follow certain hard choices such exchange rate devaluation, cuts in social spending, control on wages, and removal of price controls. Except in case of the poorest nations, loans are advanced on market interest rates (currently about 3 percent) and, if the borrowing exceeds the members quota, more onerous conditions (called conditionalities) are imposed. Unlike the World Bank, IMF does not provide project-specific loans but only temporary lending (up to 10 years) for rebuilding of foreign exchange reserves, stabilization of the currency, and payments for imports.
An international organization established in 1945 which aims to promote international trade and monetary cooperation and the stabilization of exchange rates.
The International Monetary Fund (IMF) is based in Washington, D.C. The organization is currently composed of 189 member countries, each of which has representation on the IMF's executive board in proportion to its financial importance. Quotas are a key determinant of the voting power in IMF decisions. Votes comprise one vote per SDR100,000 of quota plus basic votes (same for all members).
How to use International Monetary Fund (IMF) in a sentence?
- The IMF was originally created in 1945 as part of the Bretton Woods agreement, which attempted to encourage international financial cooperation by introducing a system of convertible currencies at fixed exchange rates.
- The International Monetary Fund was a really prestigious place and I wanted to study it and figure out exactly how it worked.
- The IMF's mission is to promote global economic growth and financial stability, encourage international trade, and reduce poverty around the world.
- The United Nations created a specialized agency called the International Monetary Fund to stabilize the worlds currencies and maintains a monetary pool from which member nations can draw in order to correct a deficit in their balance of payment.
- You must make sure that you always do things about board so that the international monetary fund doesnt start looking in to you.
Meaning of International Monetary Fund (IMF) & International Monetary Fund (IMF) Definition