INTERNATIONAL

BUSINESS
Presented by :- Siddharth Agarwal (MBA-
IB)
TOPIC :- International Monetary Fund
( IMF)
 CONT ENTS
IMF Facts How We Are Financed

History Objectives

About The IMF Functions

IMF INDIA Voting Rights

How We Are SDR

Organized
IMF FACTS
 HISTORY

The IMF was created at the 1944 Bretton Woods conference. It sought to rebuild Europe
after World War II. The Conference also set up a modified gold standard to help countries
maintain the value of their currencies.The planners wanted to avoid the trade barriers and
high-interest rates that helped cause the Great Depression.
 ABOUT THE IMF

The IMF works to achieve sustainable growth and prosperity for all of its 190 member
countries. It does so by supporting economic policies that promote financial stability
and monetary cooperation, which are essential to increase productivity, job creation,
and economic well-being.
 IMF INDIA
India belongs to the inaugural group that
became IMF members on December 27,
1945. The U.S. and Canada also became IMF
members on that day, along with many other
nations.
 HOW WE ARE
ORGANIZED

At the top of its organizational structure

is the Board of Governors. The day-to-
day work of the IMF is overseen by its
24-member Executive Board, which
represents the entire membership and
supported by IMF staff. The Managing
Director is the head of the IMF staff and
Chair of the Executive Board. S/he is
assisted by four Deputy Managing
Directors.
 HOW WE ARE FINANCED

The IMF's resources mainly

come from the money that
countries pay as their capital
subscription (quotas) when
they become members. Each
member of the IMF is
assigned a quota, based
broadly on its relative position
in the world economy.
Countries can then borrow
from this pool when they fall
into financial difficulty.
 OBJECTIVES

i. To promote international monetary co-operation.

ii. To ensure balanced international trade
iii. To ensure exchange rate stability
iv. To eliminate or to minimize exchange restrictions
by promoting the system of multilateral payments.
v. To grant economic assistance to members
countries for eliminating the adverse balance of
payment
vi. To minimize the imbalances in quantum and
duration of international trade.
 FUNCTIONS

Regulatory functions: IMF functions as a regulatory body and as

per the rules of the Articles of Agreement, it also focuses on
administering a code of conduct for exchange rate policies and
restrictions on payments for current account transactions.

Financial functions: IMF provides financial support and resources

to the member countries to meet short term and medium term
Balance of Payments (BOP) disequilibrium.

Consultative fun­ctions: IMF is a centre for international

cooperation for the member countries. It also acts as a source of
counsel and technical assistance.
 VOTING RIGHTS

The Board normally makes decisions

based on consensus, but sometimes
formal votes are taken. The votes of each
member equal the sum of its basic votes
(equally distributed among all members)
and quota-based votes. Therefore, a
member's quota determines its voting
power.

India's quota in the IMF, which determines

voting shares in the multi-lateral lending
agency, is 2.75 per cent.
 SDR

Special Drawing Rights (SDR) refers to an asset created by

the IMF to help bolster member countries' currency reserves.
When it was initially created in 1969, each SDR was worth
0.88671 grams of fine gold. Today, the IMF adjusts SDR
valuation every five years using a basket of fixed conversion
rates with the dollar, euro, yuan, yen, and pound sterling.
SDRs can be exchanged with member countries for these
currencies.
Thank you for
listening