International Monetary Fund

What is the International Monetary Fund?

The International Monetary Fund (IMF) is a specialized cooperative body that centralizes the monetary system and promotes monetary stability to international level, Besides the financial cooperation among its member countries, contributing to the sustainable development and the poverty reduction In a global form.

This entity is not only limited to dealing with the situations of its member countries, but its operation also influences the entire international monetary system.

The IMF, whose headquarters are in Washington dc, United States, was created in the year [1945 through an international treaty during the Bretton Woods conference, convened after World War II. It was formed with the intention of avoiding collapses in economic systems by dynamizing the rules accepted by the member countries, providing financial support according to its macroeconomic conditions and promoting debates related to global monetary issues.

Objectives of the International Monetary Fund

Among the objectives of the IMF we can find the following:

• Promote the adoption of good economic policy practices in the countries to avoid financial crises in your systems.
• Promote the economic cooperation among its member countries.
• Guarantee the international monetary security
• Promote the sustainability and the economic growth for the reduction of poverty.
• Energize a stable currency exchange.
• Support the multilateral system for the exchange of transactions between countries to benefit international trade.

Functions of the International Monetary Fund

The main functions of the IMF are as follows:

• Regulatory function: restrict current disbursements or transactions within the context of their functions.
• Service delivery functions and informative: provide technical advice and training to requesting states in the implementation of adequate monetary policies.
• Financial function: financially and temporarily finance the countries to overcome the problems of the payment system of their members.
• Advisory role: supervise the monetary system at the international level and the policies carried out by the member countries.

Countries that promote it

Membership in the IMF is voluntary and today they are part of it 190 countries.

Only the sovereign nations they can be members. Companies, corporations or other types of institutions, even public, cannot be. On the other hand, membership of the IMF does not require the country to be a member of the United Nations, even though it is an agency of that body.

The IMF uses a particular voting system through which the country that contributes the largest quota, has the most power of determination in voting decisions.

The 5 countries Members who contribute the highest quotas to the IMF are:

• USA.
• Japan.
• Germany.
• France.
• UK.