Table of Contents
Why the world needs the IMF?
The International Monetary Fund was founded over 50 years ago to allow currency to be exchanged freely and easily between member countries. Today, the IMF works to help member countries ensure that they always have enough foreign exchange to continue to do business with the rest of the world.
What is the impact of IMF?
The IMF advises member countries on economic and financial policies that promote stability, reduce vulnerability to crises, and encourage sustained growth and high living standards.
Where does the IMF get its money?
IMF gets most of its money from its member countries, primarily through their payment quotas. Each member country of the IMF is assigned a quota, based broadly on its economy size. Upon joining the IMF, the member countries pay 1/4 of its quota in widely accepted foreign currencies and 3/4 of its quota in its own national currency.
What are the various disadvantages of IMF?
The IMF has created an immoral system of modern day colonialism that SAPs the poor.
How does the IMF promote global economic stability?
It fosters among these countries cooperative monetary policies that stabilize the exchange of one national currency for another. It thereby encourages international trade. The IMF provides a mechanism in which each member country can cooperate with the others to promote its domestic economic prosperity and that of the entire membership.
How does the IMF make decisions?
Decisions are made by a majority of votes cast, unless otherwise specified in the Articles of Agreement. The Boards of Governors of the IMF and the World Bank Group normally meet once a year, during the IMF-World Bank Annual Meetings, to discuss the work of their respective institutions.