About International Monetary Fund (IMF)
- The International Monetary Fund (IMF) is a global financial body aimed at strengthening international monetary cooperation and maintaining financial stability.
- Members: It currently has 191 member nations, with Liechtenstein joining as the newest member on October 21, 2024.
- Creation: Created in 1944 at the Bretton Woods Conference, it works through a quota system, with countries contributing funds and receiving voting power proportional to their quotas.
- Mission: The core mission of the IMF is to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty worldwide.
- Role: The IMF acts as a lender of last resort and often requires policy reforms from borrowing countries, called “structural adjustment” programs.
International Monetary Fund Governance Structure
- Board of Governors: It is the IMF’s highest decision-making authority, comprising one governor and one alternate governor from each member country. It meets annually to decide on quota revisions, Special Drawing Rights (SDR) allocations, new memberships, or expulsion of members.
- International Monetary and Financial Committee (IMFC): IMFC advises the Board of Governors on matters related to the management of the international monetary and financial system. It has 24 members drawn from the governors.
- Executive Board: They are responsible for conducting the day-to-day business and work closely with the Managing Director.
