imf glance - akankksha

8/2/2019 IMF Glance - Akankksha

1/16

Click to edit Master subtitle style

5/8/12

INTERNATIONAL

MONETARY FUND(IMF)BY:-AKANKSHAPGDM 3RD SEM


2/16

5/8/12

IMF AT A GLANCE

Establishment:- Dec, 27,1945. 29countries signed agreement.

Financial operation:-march, 1, 1947. Current membership:-187 countries

Governing bodies

Executive board:- 24 members

Managing director:- Christinelaggard.

-


3/16

5/8/12

Cont.

Staff:- more than 2700 from 187countries.

Total resources:- Primary purpose:-

Promote international monetary

cooperation.Facilitate expansion and balanced

growth of international trade.

Promote exchange stability and


4/16

5/8/12

Cont..

Assist a multi-lateral system ofpayments in respect of transaction.

Shorten the duration and lessen thedegree of disequilibrium.

Eliminating foreign exchange

restrictions.


5/16

5/8/12

Bretton Woods

The main goal of bretton woodssystem was to establishinternational economic order that to

prevent economic as well as politicalcollapse. The two interest are:-

1. Provision of adequate liquidity.

2. Creation of an adequate mechanismfor international trade adjustments.


6/16

5/8/12

IMF

International monetary fund.

Fund created as international

institution to promote and supervisean open and stable internationalmonetary system.

Helps in resolving the short termbalance of payment problem underregime of fixed exchange rate andorderly expansion of international

trade.


7/16

5/8/12

Function of IMF

To regulate the financial relations ofits members.

To provide financial assistance tomember experiencing BOPdifficulties.

Act as a consultative organ.


8/16

5/8/12

ecen s ruc ura c anges nIMF

Quotas: Capital BaseOn joining, each member country paya sum of amount, called Quotas.

Subscription:-up to 25% in reservespecified by IMF.

Voting power:-250 basic +1 additional.

Access to financing:-borrow up to300% of its quotas.


9/16

5/8/12

SDR:- An internationalreserve asset

Special drawing rights.

Created by IMF in 1969 to

supplement members. The value of SDR is determined daily

based on basket of major

international currencies. In 1981, the currencies of 5 countries

France, Germany, Japan ,UK and

united states.


10/16

5/8/12

Cont.

The composition of SDR basket:

45% of US dollar

29% euro15% Japanese

11% pound(dec,29,2000)


11/16

5/8/12

USES OF SDR

IMF member use SDR for in variety ofvoluntary transfer.

Helped to ensure the liquidity of theSDR System.

To settle financial obligation, to make

loan and donation. And as a security for settlement of

financial obligations.


12/16

5/8/12

IMF Financing :- lendingpolicies and practices

Majority of members that draw onfund financing within the normal limitor poverty reduction and growth

facility(PRGF) Contingent credit lines(CCL) aimed at

crisis prevention , the provisions for

access in excess of the normal limit. Compensatory financing

facilities(CFF) intended to provide

financing for certain type of


13/16

5/8/12

CCL

Introduce in April 1999.

Precautionary line of defense against

capital market development. Certain consideration for CCL are:-

1. Funds stands ready to move quickly

and flexibly to approve to use offund resources.

2. Strengthened surveillance , support

for greater transparency, promoting


14/16

5/8/12

CFF

CFF was reviewed in march 2004.

This facility to cope with temporary

shortfalls in export earnings andimport cost.

In this the members with access toprivate capital market can expect toretain in face of temporary shocks aslong as BOP position remain strong.


15/16

5/8/12

Emerging issues facing IMF

Global increasing demand of Crudeof for no. of countries.

Increasing inflation

Crisis in Euro area run beyondpolicymaker.

Deteriorating financing condition ofUS market

Equity price has also retreated but

not below pre crisis levels.


16/16

5/8/12

IMF AND INDIA

India acquiring 11th place in IMFQuota.

Indias quota share has been raisedfrom 1.96% to 2.44%.

Provide economic assistance fromtime to time.

India acquire permanent place inExecutive board of director.

imf glance - akankksha

Documents