International Monetary Fund (IMF)

International Monetary Fund (IMF) Latest News

Recently, the International Monetary Fund (IMF) approved the immediate disbursement of $1 billion to Pakistan under its Extended Fund Facility (EFF).

About International Monetary Fund (IMF)

• The IMF is a specialised UN agency, established in 1944 at the Bretton Woods Conference to ensure global monetary stability post the Great Depression.
• It promotes monetary cooperation, ensures financial stability, facilitates international trade, supports high employment, and works to reduce poverty.

Functions of the IMF

• Provides economic surveillance of member countries and policy advice.
• Offers financial assistance to countries facing balance-of-payments crises.
• Delivers technical assistance and capacity-building support for sound economic governance.
• IMF loans are usually conditional upon economic reforms to ensure fiscal discipline and long-term growth.

Membership and Voting Power

• The IMF has 190 member countries.
• Each member contributes a quota, based on its economic size and performance, which determines its voting power and access to funding.
• Voting is determined by a formula: 1 vote per 100,000 SDRs of quota + basic votes.
• SDRs (Special Drawing Rights) are an IMF-created international reserve asset, not a currency, but can be exchanged among members for freely usable currencies.

Organisational Structure

• The Board of Governors (usually finance ministers or central bank governors) is the highest decision-making body.
• Day-to-day affairs are run by a 24-member Executive Board.
• The Managing Director, often a European, is the Chair of the Executive Board and leads the IMF staff.
• The IMF is headquartered in Washington, D.C.

International Monetary Fund (IMF) FAQs

Q1: What is the primary function of the IMF?
Ans: The International Monetary Fund (IMF) provides financial assistance, economic surveillance, and technical support to member countries to maintain global monetary cooperation and stability.

Q2: When was the IMF established?
Ans: The IMF was established in 1944 at the Bretton Woods Conference and came into existence in 1945.

Source: TH