INTERNATIONAL MONETARY FUND (IMF)

The International Monetary Fund (IMF) was established in 1945. As of 2005, 191 countries are its members. The main idea underlying the creation of the IMF was to development an orderly international monetary system, i.e., to facilitate global payment systems and adjust exchange rates between national currencies.

Objectives of IMF

• To establish monetary cooperation among the various member countries.

• To ensure stability in Foreign Exchange Rates and eliminate the instability of foreign exchange.

• To remove or relax these exchange controls.

• To promote international trade.

• To Promote Investment of Capital in Backward and Underdeveloped Countries.

• To Eliminate or Reduce the Disequilibrium in the Balance of Payments.