International Monetary Fund

International Monetary Fund

In common with many of the multilaterals, plans were laid for the International Monetary Fund (IMF) in the closing days of World War II. In 1944, a meeting of individuals representing 44 countries was convened in Bretton Woods, New Hampshire, USA to draw up plans to bring order to the economies of the world. The participants were mindful that actions taken at the close of the first world war were largely unhelpful and at least partially responsible for the circumstances that led to the second.  The objective in 1944 was to create an organisation to encourage international monetary cooperation. The IMF's role – now as well as then –  is to help maintain economic stability and shared prosperity in the world. There are currently 189 IMF member countries and the organisation has lending resources of one trillion dollars – with zero interest rates applying to low-income countries. Additionally, funds are available for technical advice and training. The member countries are represented by 24 IMF executive directors and a staff of 150 nationalities. Significantly, in 2012, the IMF mandate was extended to include all macroeconomic and financial sector issues that affect global economic stability. The top post at the IMF is managing director and chairperson and the present (2020) incumbent is Kristalina Georgieva who replaced Christine Lagarde in this role in late 2019. Georgieva was the first representative from an emerging market economy (Bulgaria) to be appointed as head of the IMF. Working for the World Bank since 1993, she eventually became chairperson and later acting president before moving to the IMF. The financial resources of the IMF are, in the main, provided by member countries by way of quotas (which are broadly based on each country’s relative economic strengths). In 1969, the IMF created the Special Drawing Right (SDR) which is an international reserve asset and may be used to bolster member countries' official reserves.

IMF Mission to Egypt: Improvement in Targeting of Energy Subsidies

A staff mission from the International Monetary Fund visited Cairo during April 2-15. At the conclusion, Andreas Bauer, Mission Chief for Egypt, issued the following statement: “The mission made progress

IMF: The Risk Side of Exceptionally Low Interest Rates

Several years of exceptionally low interest rates and bond buying by some advanced economy central banks have improved some indicators of banks’ health while supporting the economy and financial stability,

The IMF on Low Income Country Bounce Backs

Low-income countries have bounced back in the past two decades. Analysis in the International Monetary Fund’s latest World Economic Outlook (WEO) suggests that dynamic low-income countries are on a stronger

IMF Statement on Cyprus

Statement on Cyprus by Olli Rehn, European Commission Vice-President and Christine Lagarde, Managing Director of the International Monetary Fund. The Cypriot authorities have put forward a multi-annual reform programme to
Read more

Arab Countries In Transition: Where are they Heading?

By Masood Ahmed Director of the IMF’s Middle East and Central Asia Department “You can tell whether a man is clever by his answers. You can tell whether a man

Financial Stability in the European Union: IMF Assessment

In its first ever European Union-wide assessment of the soundness and stability of the financial sector, the International Monetary Fund this month pointed to the need to step up regional

The International Financial Institutions: Collaboration for Development and Growth

Leaders of the African Development Bank, European Bank for Reconstruction and Development, Inter-American Development Bank, International Monetary Fund, and the World Bank Group pledged on February 26, 2013 close collaboration

IMF Support for Sri Lanka’s Economic Reform Programme

An IMF staff mission visited Colombo January 30 – February 13 to discuss possible financial support for Sri Lanka’s economic reform agenda under an Extended Fund Facility. The mission met
Read more

Frontier Asia and Hopes for More Inclusive Growth

The International Monetary Fund (IMF) and the Japan International Cooperation Agency (JICA) on January 28th held a conference in Bangkok, entitled “Frontier Asia: Economic Transformation and Inclusive Growth.” The conference

Asia in 2013: Grounds for Optimism, but Challenges Ahead

By Anoop Singh Director, IMF Asia and Pacific Department After a subdued economic performance in emerging Asia in 2012, growth in the region is set to pick up gradually in

Do Not Over-Heat

The IMF reports that powered by a resurgence in Asia, emerging markets, especially those of China and India are leading the world out of recession. In many emerging and developing

IMF Mission Reports Positive Developments in Georgia

An International Monetary Fund (IMF) mission visited Tbilisi from November 27 to December 12, 2012 for discussions on the first review of the economic programme supported by a blend of
Read more
CFI

Published by
CFI