Aims And Functions Of The International Monetary Fund

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Aims and Functions of IMF
The International Monetary Fund (IMF) started its operations as a financial institution on March 1st, 1947. Since then, the state membership has risen from 29 countries to a near global number of 188 countries. IMF operates under the United Nations and has several aims, objectives and functions. The first aim of IMF is the promotion of international monetary corporation by establishing a permanent institution which offers collaborative and consultative machinery on international monetary problems. IMF also aims at facilitating balanced growth and the expansion of international trade, maintenance and promotion of employment levels and enhanced productive resource development for all members (Fritz-Krockow & Ramlogan,
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IMF provides surveillance over the economic policies of the members by ensuring that all the member states pursue policies consistent to the objectives and aims of IMF. IMF operates as an agency that provides resources that help the member states to meet short and medium term disequilibrium in their balances of payment. IMF combats poverty in developing and low-income states through the provision of concessional loans that help to the efforts of the countries towards poverty eradication. IMF assist member states to mobilize external funding from multilateral and bilateral lenders and donors by endorsing the economic policies of the member states. IMF strengthens the international monetary system by proving the collaborative and consultative forum for the members on matters of international money and finance. IMF increases the supply of international reserves globally by offering the special drawing right whenever there is a global need in the supplementation of the existing asset reserves. IMF builds the capacity of the members through technical training and assistance. The last function of IMF is to disseminate statistical information and conduct research on international economic policies (Fritz-Krockow & Ramlogan, …show more content…
In return, IMF rewards the member states through the provision of advice on microeconomic policies, financial support in times of needs like payment balances and the technical training and assistances aimed at the improvement of economic management of the nation. To ensure the effectiveness of its mandate, IMF helps in solving of crises and working closely with the member states in poverty alleviation and promotion of growth (IMF,

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