International Monetary Fund
The International Monetary Fund (IMF) is an international financial institution that promotes monetary cooperation, secures financial stability, facilitates international trade, and provides financial assistance to countries experiencing balance of payments problems. It was established in 1944 at the Bretton Woods conference and formally came into existence in 1945.[1]
Purpose
The IMF was created to promote international monetary cooperation and exchange rate stability, and to provide short-term financial assistance to countries facing balance of payments difficulties. Its mandate has evolved to include surveillance of members' economic policies, technical assistance, and lending to countries in crisis.[1]
Functions
| Function | Description |
|---|---|
| Surveillance | Monitoring economic and financial policies of member countries. |
| Lending | Providing financial support to countries with balance of payments problems. |
| Technical assistance | Advising members on economic policy and institution-building. |
| Capacity development | Training and support to strengthen economic institutions. |
Governance
The IMF is governed by its member countries, each of which holds a quota that determines its voting power and its financial contribution. Decisions are made by the Board of Governors and the Executive Board. The IMF has been criticised for the influence of large economies on its governance and for the conditions attached to its lending.[1]