International Monetary Fund

The International Monetary Fund (IMF) is an international organization that was conceived on July 22, 1944 originally with 45 members and came into existence on December 27, 1945 when 29 countries signed the agreement, with a goal to stabilize exchange rates and assist the reconstruction of the world’s international payment system. Countries contributed to a pool which could be borrowed from, on a temporary basis, by countries with payment imbalances.

The IMF works to improve the economies of its member countries. The IMF describes itself as “an organization of 187 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty.” The organization's stated objectives are to promote international economic cooperation, international trade, employment, and exchange rate stability, including by making resources available to member countries to meet balance of payments needs.balance of payments

History The International Monetary Fund was originally created as part of the Bretton Woods system exchange agreement in During the Great Depression, countries sharply raised barriers to foreign trade in an attempt to improve their failing economies. This led to the devaluation of currencies and a decline in world trade. This breakdown in international monetary cooperation created a need for oversight. The representatives of 45 governments met in the Mount Washington Hotel in the area of Bretton Woods, New Hampshire, United States, with the delegates to the conference agreeing on a framework for international economic cooperation to be established post World War II. The participating countries were concerned with the rebuilding of Europe and the global economic system after a devastating war.Bretton Woods systemGreat Depression

Benefits Access to information on economic policies of all member countries Opportunity to influence members’ economic policies Access to technical assistance in banking, fiscal affairs, and exchange matters Financial support in times of payment difficulties Increased opportunity for trade and investment

Leadership The IMF is led by a Managing Director, who is head of the staff and Chairman of the Executive Board. The Managing Director is assisted by a First Deputy Managing Director and three other Deputy Managing Directors. The Management team oversees the work of the staff and maintains high-level contacts with member governments, the media, non- governmental organizations, think tanks, and other institutions

Board of Governors The Board of Governors consists of one governor and one alternate governor for each member country and the governor is appointed by the member country. They normally meet once a year. The Board of Governors is advised by the International Monetary and Financial Committee and the Development Committee. The International Monetary and Financial Committee has 24 members and monitors developments in global liquidity and the transfer of resources to developing countries. The Development Committee has 25 members and advises on critical development issues and on financial resources required to promote economic development in developing countries. They also advise on trade and global environmental issues