IMF : International Monetary Fund.

Created in 1945 for internatonal economic cooperation focusing on payment problems and stability of
currencies. Headquarter is in Washington DC,USA .

In the beginning (1945-2003) there was 29 mentor countries, but currently there are 189 countries . It
was formed during the closing years of World War 2, countries realized that there must be a common
international forum for acheiving economy cooperation, promoting international trade and help the
needy nations . After WW2 a conference was converned in 1944 at Bretton Woods, 44 countries attended.

objectives :

Promote international monetary cooperation .

To establish a system of multilateral payments.

To maintain stability in the rate of exchange .

Provide aid to members during emergencies .

Reduce disequilibrium in balance of payments.

Promote balanced economic development .

Functions of the IMF :

Surveillance : keeping track of the global economy and the economies of member countries

lending : lending countries with balance of payments difficulties . Financial assistance to countries to
meet international payments

technical assistance :to assist mainly low and middle income counties in effectively managing their
economies .

From where do the IMF gets money ?

Quota subscriptions: the money each member contributes when joining the IMF. Each member country
is required to subscribe it's quota partly in gold and partly in it's own national currency

General arragements to borrow (1962):

line of credit set up with several governments and banks througout the world.

SDR: ( Special Drawing Right )

an invented currency , it's value is based on the worth of the world's five major currencies : Us Dollar,
French France, Pound Sterling, Japanese Yen , Deutche Mark.