Lecture Notes on Imf - 7903 Words

IE - LECTURE 7 INTERNATIONAL MONETARY FUND OBJECTIVES OF IMF To promote international monetary cooperation, facilitate the expansion of trade, and thus, to contribute towards increased employment and improved economic conditions in all member countries. 1. To promote international monetary cooperation through a permanent institution which provides the machinery for consultation and collaboration on international monetary problems. 2. To facilitate the expansion and balanced growth of international trade and to contribute thereby to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary†¦show more content†¦Each member country is represented by a Governor. The Board of Governors has delegated most of its powers to the Executive Board, which is responsible for conducting the business of the Fund and is therefore in permanent session at the Fund headquarters in Washington. The Executive Board is chaired by the Managing Director. The Executive Board appoints the Fund’s Managing Director, who serves both as its chairman and as chief of the operating staff of the Fund, with a five-year term of office. Resources : (i)Subscription by members and (ii) Borrowings. Quotas and Subscriptions Each member is assigned a quota expressed in Special Drawing Rights (SDRs). Quotas are used to determine the voting power of members their contribution to the Fund’s resources, their access to these resources and their share in allocations of SDRs. A member’s quota reflects its economic size in relation to the total membership of the Fund. Each member pays a subscription to the Fund equivalent to its quota, and the Board of Governors decides on the proportion to be paid in SDRs or in the member’s currency. A member is generally required to pay about 25 per cent of its quota in SDRs or in currencies of other members selected by the IMF; it pays the remainder in its own currency. FINANCING POLICIES AND FACILITIES The principal way in which the IMF makes its resources available to members is by selling to them the currencies of other members or SDRs in exchange for their own currencies.Show MoreRelatedFrom 1917 to 1919 Woodrow Wilson argued Essay2076 Words   |  9 Pagespostwar international organizations like the United Nations, the IMF and World Bank, etc. Why did Roosevelt and Truman succeed where Wilson failed? Had the new Democrats presented their initiatives more skillfully, had Americans changed their way of thinking about the relationship between their country and the world, had the world changed, perhaps, or was it something else? 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