Objectives of IMF
- Promotion of International Monetary co-operation.
- Facilitate the expansion too balanced increment of international merchandise too to contribute thereby to the advertisement too maintenance of high levels of exercise too existent income too to the evolution of the productive resources of all members equally primary objectives of economical policy.
- Promotion of central charge per unit of measurement stability too avoidance of competitive currency depreciation.
- Expansion of international merchandise past times removal of all central controls too restrictions too render for multilateral convertibility of expediencies.
- To help fellow member countries with fund during the periods of temporary difficulties inwards observe of residue payments.
What is Bretton Woods Agreement ?
This is an understanding which was signed at the Bretton Woods Conference (formally known equally the UN Monetary too Financial Conference), a gathering of 730 delegates from all 44 Allied nations at the Mount Washington Hotel, situated inwards Bretton Woods, New Hampshire, United States, to regulate the international monetary too fiscal monastic tell after the determination of World War II. This understanding leads to the establishment of International Monetary Fund (International Monetary Fund) too IBRD (International Bank for Reconstruction too Development).
During the World War II, almost all the countries involved inwards the state of war straight or indirectly introduced too proficient a rigorous organisation of central controls.
With the establishment of the International Monetary Fund nether the Bretton Woods Agreement after basis state of war II, central rates betwixt countries were laid or pegged inwards damage of gilded or the US dollar at $ 35 per ounce of gold. This related to a fixed central inside a band of i percent. But this was exclusively allowed when the province could convince the International Monetary Fund government that at that topographic point was a primal disequilibrium inwards its residue of payments. This organisation is known equally Bretton Woods System.
The Bretton Woods organisation collapsed inwards 1971 when US dollar was made equally in-convertible into gilded at the Federal Reserve System.
The Jamaica Agreement of Jan 1976 formalized the regime of floating central rates nether the auspices of the IMF. A release of factors forced the bulk of fellow member countries of the International Monetary Fund to float their currencies.
By the Second Amendment of the International Monetary Fund charter inwards 1978, the fellow member countries are non expected to keep too constitute par values with gilded or dollar. The organisation of floating central rates is non i of gratis flexible central rates but managed floating.
Fast Facts on the IMF
- Head Quarters : Washington, D.C., US
- Managing Director : Christine Lagarde
- Current Membership : 188 Countries
- Founding Countries – 29
- Member Countries – 188
- Newest Member : South Sudan on 18th Apr 2012
- Staff – 2,400 (approx)
That’s all for at nowadays friends. In our adjacent postal service nosotros shall hash out close International Monetary Fund Quotas, Functions too the relation betwixt Bharat too IMF. Happy Reading 🙂