Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
MONETARY
FUND
International
Monetary Fund
Overview
The International Monetary Fund (IMF) is an
organization of 186 countries, working to foster
global monetary cooperation, secure financial
stability, facilitate international trade, promote
high employment and sustainable economic
growth, and reduce poverty around the world.
The IMF works to foster global growth and
economic stability. It provides policy advice and
financing to members in economic difficulties
and also works with developing nations to help
them achieve macroeconomic stability and
reduce poverty.
3
Overview
With its global membership of 186 countries, the IMF is
uniquely placed to help member governments take
advantage of the opportunitiesand manage the
challengesposed by globalization
The IMF tracks global economic trends and performance,
alerts its member countries when it sees problems on the
horizon, provides a forum for policy dialogue, and passes
on know-how to governments on how to tackle economic
difficulties
The IMF provides policy advice and financing to members
in economic difficulties and also works with developing
nations to help them achieve macroeconomic stability and
reduce poverty
4
III.
IV.
V.
IMF Functions
The IMF's main goal is to ensure the stability of the international monetary
and financial system. It helps resolve crises, and works with its member
countries to promote growth and alleviate poverty.
I.
II.
III. IMF Lending: In the event that member countries experience difficulties
financing their balance of payments, the IMF is also a fund that can be
tapped to facilitate recovery.
IV. Research and Data : Supporting all three of these activities is the IMF's
economic and financial research and statistics.
6
Objectives of IMF
I.
Conditionality
IMF lends to its member countries,
ensuring that, members are pursuing
policies that will improve external
payment problems.
Commitment to implement corrective
measures.
To repay in a timely manner.
Membership
I.
II.
Subscriptions
A member's quota subscription determines the maximum amount of
financial resources the member is obliged to provide to the IMF.
A member must pay its subscription in full upon joining the IMF: up
to 25 percent must be paid in the IMF's own currency, called
Special Drawing Rights (SDRs) or widely accepted currencies (such
as the dollar, the euro, the yen, or pound sterling), while the rest is
paid in the member's own currency.
Voting power. The quota largely determines a member's voting
power in IMF decisions. Each IMF member has 250 basic votes
plus one additional vote for each SDR 100,000 of quota.
Access to financing. The amount of financing a member can
obtain from the IMF (its access limit) is based on its quota. Under
Stand-By and Extended Arrangements, which are types of loans, a
member can borrow up to 200 percent of its quota annually and
600 percent cumulatively.
11
Organization &
Management
II.
III.
Governance Structure
The Board of Governors is the highest decision-making
body of the IMF. It consists of one governor and one
alternate governor for each member country. The governor
is appointed by the member country and is usually the
minister of finance or the head of the central bank.
While the Board of Governors has delegated most of its
powers to the IMF's Executive Board, it retains the right to
approve quota increases,
special drawing right (SDR) allocations, the admittance of
new members, compulsory withdrawal of members, and
amendments to the Articles of Agreement and By-Laws. It
also elects or appoints executive directors
The Boards of Governors of the IMF and the World Bank
Group normally meet once a year
13
Governance Structure
Ministerial Committees: The IMF Board of Governors is
advised by two ministerial committees, the
International Monetary and Financial Committee (IMFC) and
the Development Committee.
The IMFC has 24 members, drawn from the pool of 186
governors
14
Finances
Quotas:
The IMF's resources come mainly from the money that countries
pay as their capital subscription when they become members.
Quotas broadly reflect the size of each member's economy: the
larger a country's economy in terms of output and the larger and
more variable its trade, the larger its quota tends to be. They also
help determine how much countries can borrow from the IMF and
their share in allocations of special drawing rights or SDRs (the
reserve currency created by the IMF in 1969).
Gold:
The IMF holds a relatively large amount of gold among its assets,
for reasons of financial soundness, also to meet unforeseen
contingencies.
The IMF holds 103.4 million ounces (3,217 metric tons) of gold,
worth about $83 billion as of end-August 2009, making it the
third-largest official holder of gold in the world.
15
History of IMF
The IMF has played a part in shaping the global economy since
the end of World War II.
1. Cooperation and reconstruction (194471)
During the Great Depression of the 1930s, countries attempted to
shore up their failing economies by sharply raising barriers to
foreign trade, devaluing their currencies to compete against each
other for export markets, and curtailing their citizens' freedom to
hold foreign exchange. These attempts proved to be selfdefeating. World trade declined sharply, and employment and
living standards plummeted in many countries.
16
History of IMF
2. The Bretton Woods agreement
The IMF was conceived in July 1944, when representatives of 45
countries meeting in the town of Bretton Woods, New Hampshire,
U.S, agreed on a framework for international economic
cooperation, to be established after the Second World War. They
believed that such a framework was necessary to avoid a repetition
of the disastrous economic policies that had contributed to the
Great Depression.
The IMF came into formal existence in December 1945, when its
first 29 member countries signed its Articles of Agreement. It began
operations on March 1, 1947. Later that year, France became the
first country to borrow from the IMF.
Par value system - The countries that joined the IMF between 1945
and 1971 agreed to keep their exchange rates (the value of their
currencies in terms of the U.S. dollar). This prevailed until 1971.
17
History of IMF
3. The end of the Bretton Woods System (197281)
By the early 1960s, the U.S. dollar's fixed value against gold, under
the Bretton Woods system of fixed exchange rates, was seen as
overvalued.
In August 1971, U.S. President Richard Nixon announced the
"temporary" suspension of the dollar's convertibility into gold.
Since the collapse of the Bretton Woods system, IMF members
have been free to choose any form of exchange arrangement they
wish : allowing the currency to float freely, pegging it to another
currency or a basket of currencies, adopting the currency of
another country, participating in a currency bloc, or forming part of
a monetary union.
18
Thank You!
19