IMF

PRESENTED BY
: VAISHALI SHARMA
LECTURER MBA (IB)

Dominique Strauss-Kahn John Lipsky



MD 
DEPUTY MD
 The International Monetary Fund (IMF) is an
organization of 185 countries, working to foster
global monetary cooperation, secure financial
stability, facilitate international trade, promote
high employment and sustainable economic
growth, and reduce poverty around the world.

 The IMF's main purpose—to provide the stability of
the international monetary and financial
system.

 It helps resolve crises, and works with its member
countries to promote growth and alleviate
poverty.
 Overview
 The IMF works to foster global growth and
economic stability.

 It provides policy advice and financing to members
in economic difficulties and also works with
developing nations to help them achieve
macroeconomic stability and reduce poverty.

 The IMF collaborates with the World Bank, the
regional development banks, the World Trade
Organization (WTO), UN agencies, and other
international bodies.

Key IMF activities

 The IMF supports its membership by

providing:


 Policyadvice to governments and central banks

based on analysis of economic trends and cross-
country experiences.

 Research, statistics, forecasts, and analysis based
on tracking of global, regional, and individual
economies and markets.

 Loans to help countries overcome economic
difficulties.

 Concessional loans to fight poverty in developing
countries.

 Technicalassistance and training to help countries
improve the management of their economies.

 Promote exchange rate stability and an open
system of international payments



 Providea forum for cooperation on international
monetary problems.

 Facilitatethe growth of international trade, thus
promoting job creation, economic growth, and
poverty reduction.

 Lend countries foreign exchange when needed, on
a temporary basis and under adequate
safeguards, to help them address balance of
payments problems.

FUNCTIONS
 It has three main tools  Economic surveillance
at its disposal to 
carry out its 
mandate:
 Technical assistance &

Training.
 


 Lending
Economic surveillance

 The IMF promotes global growth and economic stability

by encouraging countries to adopt sound economic
policies.

 It regularly monitors global, regional, and national
economic developments.

 It also seeks to assess the impact of the economic
policies of individual countries on other economies.

 This process of monitoring and discussing is known as
economic surveillance. On a regular basis—usually
once each year, the IMF conducts in depth appraisals
of each member country's economic situation
 Technical assistance and training
 To help member countries strengthen their capacity to
design and implement effective policies.


 Monetary and financial policies (monetary policy

instruments, banking system supervision and
restructuring, foreign management and operations,
clearing settlement systems for payments, and
structural development of central banks)

 Fiscal policy and management (tax and customs
policies and administration, budget formulation,
expenditure management, design of social
safety nets, and management of domestic and
foreign debt)

 Compilation,
management, dissemination, and
improvement of statistical data

 Economic and financial legislation.

Lending

 In the event that member countries experience

difficulties financing their balance of payments, the
IMF is also a fund that can be tapped to facilitate
recovery.

 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.

 The IMF also provides low-income countries with loans
at a concessional interest rate through the Poverty
Reduction and Growth Facility (PRGF) and the
Exogenous Shocks Facility (ESF

Thank you