IMF Full Form
What is the full form of IMF?
The IMF Full Firm is the International Monetary Fund. The IMF is one of the most important financial agencies of the United Nations made up of 190 countries at present time. The expanded form of the IMF is the International Monetary Fund. The objective of this organization is to increase international monetary cooperation, increase employment, international trade, sustainable economic growth, and many more. This organization is headed by a board of governors, and each represents one of the organization's member countries. Kristalina Georgieva is the current managing director of the IMF. The idea of the IMF was first brought by Harry Dexter White and John Maynard Keynes.
- What is the full form of IMF?
- What is IMF?
- What is Capacity Development?
- Functions of IMF
- Member Countries of the IMF
- Structure Organisation of IMF
- Timeline of IMF
- Other Related Full Form -
What is IMF?
IMF stands for the international monetary fund, which is an international agency and its headquarters in Washington. This organization facilitates financial stability and economic growth.
What is Capacity Development?
Capacity development is defined as the process through which organizations, societies, and individuals strengthen and maintain the capabilities to achieve their objectives of own development over time. It is essential for making a sustainable contribution.
Functions of IMF
The important functions of the IMF are explained below. There are three primary functions of the IMF. These functions are
To give short-term capital to help the balance of payment and also helps in the prevention of international economic crisis.
To revive the economy again after the major world war or great depression. It also delivers capital investment for economic growth and projects such as infrastructure.
It also helps the national government in managing their exchange rates and authorizes these governments to prioritize economic growth and also supervise the fixed exchange rate arrangement between counties.
The other important functions of the IMF are
It enables balanced international trade
Its aim is also to reduce poverty around the world.
It also aims to secure finances by minimizing the exchange rate
Member Countries of the IMF
The IMF was initially started in 1945 as a component of the Bretton Woods Agreement. It started with 44 members and now there are 190 members of this organization at present time. Now according to articles of agreement and terms prescribed by the board of governors any state may become a member of the IMF, whether or not a member of the UN. Countries may not be suitable for IBRD (international bank for reconstruction and development) if they are not a member of the IMF.
Structure Organisation of IMF
The United Nations is the main or base organization that handles the proper administration and functioning of the international monetary fund. The head of the IMF is the managing director who is voted by the members of the executive board for 5-year terms. The International Monetary Fund is formed by the executive board, Ministerial communities, and the board of governors. There are two committees - The international monetary and financial committee and the second committee is the development committee.
Timeline of IMF
The IMF was formed at the UN conference in Bretton Woods, New Hampshire, United States in July 1944. This conference was held to avoid the mistakes that led to world war II and the great depression.
In June 1948 soviet union started a blockade of west Berlin
In October 1956, the conflict took place over the Suez Canal, and the first loan was funded by IMF to the four countries involved in the Suez crisis
In 1961 IMF creates the Africa department
In April 1978, rights were acknowledged by IMF to adopt exchange rate arrangements.
In March 1986 IMF decided to lend to low-income developing countries
In December 1991 biggest expansion of IMF occur after 1960, when the Soviet Union dissolved
In 1996 IMF and World bank launched an initiative for heavily indebted poor countries
In August 1997 IMF announces a $ 17 billion programme for Thailand, followed by some packages for Indonesia and South Korea
In 1999 IMF and the World bank created a financial sector assessment programme to gauge the resilience of members' financial systems.
In January 2001 IMF announces the relief of debt of 22 counties
In December 2001 China joined World Trade Organization
In December 2010, the IMF board approves far-reaching changes
IMF provide a loan of 37 billion dollars to some middle East countries between 2011-2014
Between 2014-2015, IMF assisted three countries affected by Ebola
In September 2016, Chinese currency was added to the IMF currency basket alongside the dollar, euro, and pound.
In 2020 IMF helped its members during the lockdown period.
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Frequently Asked Questions (FAQs)
There are three important sources of IMF, member quota, multilateral borrowing agreements, and bilateral borrowing agreements. A member quota is the source of primary funding for the IMF.
The major difference between the World Bank and IMF is that the World bank works with developing countries and aims to reduce poverty and enhance shared prosperity whereas the international monetary fund aims to stabilize the international monetary system and act as a monitor for a world currency. The world bank is larger than the IMF. The size of the planet bank is three times larger than the IMF.
Kristalina Georgieva is the current president of the IMF in 2022.
The regional development centres are in East Africa, South Africa, Central Asia, Mongolia, Thailand, etc.