Sure , have you heard of the IMF? TV In the press or on the radio … It is a very important organization, but what is the IMF? Below are some of these acronyms related to what; It will tell you what it does and other aspects that make it clearer.
What is the IMF?
First of all, you should know that. The IMF stands for International Monetary Fund. It considered to be the axis of the international financial system. In other words We are talking about an organization set up under the United Nations that strives to bring financial stability to every country.
It is made up of 184 countries in the field of promoting global financial cooperation. This means that all countries must work together to balance the currencies. However, financial stability, International trade; It is also responsible for ensuring job creation and economic growth. To achieve all this, countries must follow the guidelines set by the IMF. What will they do? Reforms made within the framework of economic law.
When the IMF was founded
The International Monetary Fund (IMF ) was formed in the mid-1940s, especially in the United States in 1944, when the United Nations convened. (From John Maynard Keynes and Harry Dexter White). The Bretton Woods Convention (‘s Convention) is a well-known conference in which more than forty countries have decided to sign an international agreement aimed at promoting global economic cooperation. Mitigating the effects of a recession.
However, the IMF was established in December 1945. Twenty-nine countries were involved in the event, and soon another 15 were added, bringing the total to 44 members.
Sir, the existence of this body was born with the aim of regulating the international financial system. Not only for international payments but also for national exchange rates. In this way There is a tool to avoid crises, as it is recommended that countries adopt well-established economic plans to avoid crises or major problems. Currently, and since 1948, the IMF has been a WHO; UNESCO It has the same level of accreditation as other organizations such as the FAO.
What is the difference between IMF and World Bank?
Note that both the IMF and the World Bank have the same origins. Both were born in 1944 at the Bretton Woods Conference. However They deal with different issues. Meanwhile, the World Bank is working with developing countries to reduce poverty. These include prosperity; What the IMF is doing is stabilizing the international monetary system. In other words, the World Bank Responsible for providing advice and technical assistance. But the IMF provides loans and monitors the economy.
Who forms the International Monetary Fund?
As mentioned earlier, the IMF is made up of 184 member states, each with its own representation. in fact, They are:
- Board of Administrators Represents member countries. They meet once a year with an administrator representing them and a rotating administrator (formerly disabled). He is also accused of referring matters not only to important economic policy matters but also to the Executive Board.
- Executive Board There are 24 executive directors. The IMF’s Managing Director hold the meeting, sometimes more often, but in the mornings and afternoons about three times a week. Its members include the United States; Germany France, Japan, China Britain Saudi Arabia and Russia each have their own constituencies, with the other 16 elected for a two-year term.
How does the IMF provide funding?
We are talking about a financial institution that is responsible for global financial stability, but the truth is that it must have the financial resources to carry out its work. But where did he come from?
El International Monetary Fund has its own resources. Fees for each member of this organization. Quotas unfixed, but calculated on the basis of each country and its economic growth (GDP analyzed every five years). Therefore, the lowest country is more advanced than the developed one.
But this is not the only source of funding for the IMF. There are other options:
- Credit capture can become a “profitable” bank for lending.
- Loan agreements Exactly We are talking about two categories.
- General loan agreements (since 1962).
- New loan agreements (previously amended in 1997).
How will the International Monetary Fund help countries?
One of the most frequently asked questions is how will the IMF help countries? In addition, one of the activities we have previously commented on to you is to provide funding to countries.
In other words The IMF itself can provide loans and assistance to countries that are unable to pay their debts. . And how does he do it? By empowering you to influence economic policies. That means goals, As long as changes in needs and economic policies continue, lending will not benefit the organization, but it should try to somehow clear the country’s economy. It does not depend on other people’s loans.
As you can see, the IMF is easy to understand; In other words, it has become a very important organization for the economic stability of all the countries of the world (or only 184 of the 193 states that exist in almost all of them) will be integrated into the world. What is it? Activities Have you clarified the most important aspects of finance and the International Monetary Fund?