Imf

Imf

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  The Role ofIMF in Development of International Business Presented By: Suraj Panpatte
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  The International MonetaryFund was conceived in July 1944 originally with 45 members and came into existence in December 1945 when 29 countries signed the agreement. IMF started to make service with IBRD in 1947. The IMF works to improve the economies of its member countries. History of IMF
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  About IMF • Yearthe IMF was established1994 • Members of countries189 • Nationalities represented by staff150 • Executive directors24 • Total amount of IMF is able to lend to its members countries 1 trillion dollars • Current lending agreement36 • Interest rate on loan to low-income countries0% • For hands on technical advice, training and other activity. 303 million dollars Source: IMF Website
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  As set forthin its Articles of Agreement, the purposes of the IMF are (1) to promote international cooperation on international monetary problems, (2) to facilitate the expansion and balanced growth of international trade, promoting high levels of employment and real income and the development of productive resources in all member countries (3) to promote exchange rate stability and to avoid competitive exchange rate depreciation, The IMF’s Mandate
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  (4) to helpestablish a multilateral system of payments among countries for current transactions and to help eliminate foreign exchange restrictions which hamper world trade, (5) to make loans to member countries on a temporary basis with adequate safeguards for repayment, (6) to shorten with such loans the duration and to lessen the degree of disequilibrium in the international balances of payments of members.
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  IMF is theintergovernmental organization that oversees the global financial system by following the macroeconomic policies of its member countries, in particular those with an impact on exchange rate and the balance of payments. It is an organization formed with a stated objective of stabilizing international exchange rates and facilitating development through the enforcement of liberalizing economic policies on other countries as a condition for loans, restructuring or aid. International Monetary Fund
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  The IMF wascreated to support orderly international currency exchanges and to help nations having balance of payment problems through short term loans of cash. Its headquarters are in Washington, United States.
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  What the IMFdoes? IMF TECHNICAL ASSISTANCE SURVEILLENCE LENDS
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  1. Surveillance The IMFpromotes economic stability and global growth by encouraging countries to adopt sound economic and financial policies. To do this, it regularly monitors global, regional, and national economic developments. It also seeks to assess the impact of the policies of individual countries on other economies. This process of monitoring and discussing countries’ economic and financial policies is known as Bilateral Surveillance.
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  2. Technical Assistanceand Training IMF offers technical assistance and training to help member countries strengthen their capacity to design and implement effective policies. Technical assistance is offered in several areas, including fiscal policy, monetary and exchange rate policies, banking and financial system supervision and regulation, and statistics.
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  3. Lending IMF financingprovides member countries. A policy program supported by financing is designed by the national authorities in close cooperation with the IMF. Continued financial support is conditional on the effective implementation of this program. https://www.imf.org/external/a bout/howwedo.htm Source:
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  Role of IMF 1)Promoting research in various areas of international economics and monetary economics. 2) Providing a forum for discussion and consultation among member countries. 3) Focusing on its core macroeconomic and financial areas of responsibility. 4) Working in a complementary fashion with other institutions established.
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  13 5) It worksto foster global growth and economic stability by providing policy advice and financing the members by working with developing nations to help them achieve macroeconomic stability and reduce poverty. 6) The IMF is playing an expanding role in the global monetary system. 7)To facilitate the expansion and balanced growth of international trade. 8) To promote international monetary cooperation
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  14 Thank You