Here we come up with an another article in our days observance section. Because we don’t want you to miss any important topic which is related to our self not only in terms of exams but as a human being. So here we go –
The International Monetary Fund (IMF)is an international organization headquartered in Washington, D.C. It was established along with the International Bank for Reconstruction and Development (also known as World Bank), at the conference of 44 nations held at Bretton Woods, USA in July 1944 to build a framework for economic cooperation and also to avoid a repetition of the competitive devaluations that had contributed to the Great Depression of the 1930s. It came into formal existence in 1945 with 29 member countries and the goal of reconstructing the international payment system.
The organization is working on to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth and reduce poverty around the world.
IMF works on quota system, Countries contribute funds to a pool through a quota system from which countries experiencing balance of payments difficulties can borrow money. IMF is controlled and managed by a Board of Governors. Currently there are 24 Directors and each representing a single country or a group of countries. The transactions of IMF are expressed in Special Drawing Right (SDR) which is also known as Paper Gold. The IMF’s financial year is form May 1 to April 30.
India and IMF :
India is the founder member of the IMF and also among the top 10 members of IMF, along with the U.S, Japan, France, Germany, Italy, the United Kingdom, China and Russia. IMF has played an important role in Indian economy. IMF has provided economic assistance from time to time to India and has also provided appropriate consultancy in determination of various policies in the country. India was among the first five nations having the highest quota with IMF and due to this status India was allotted a permanent place in Executive Board of Directors.
Recent news related to IMF :-
- Christine Lagarde appointed as MD of IMF for second term.
- Nauru becomes 189th member of IMF.
- IMF, WB, UN And OECD to form a new group to stop Tax Erosion.
- IMF and India set up regional training and technical assistance center in New Delhi.
- India to host the IMF conference on Asia’s economic performance.
- Voting Rights of India in IMF increased.
- India To Notch Up To 7.5 % Growth In 2016–17 : IMF.
- Sunil Sabharwal re appointed as alternate Executive Director at IMF.