INTERNATIONAL BUSINESS

INTERNATIONAL MONITORY FUND

(IMF)

Members

Abdullsamad Khan(L4S12MCOM0130)

Faheem Ahmad Rana(L4S12MCOM2126)

Hafiz Zain-UL-Abideen(L4S12MCOM2141)

IMF

IMF is UNO recognized international monetary fund or reserve which helps its members.

It has 188 members across the all nations but soviet Russia and its member are not linked with IMF.

All work is done by its board of directors which is made by board of governors. Every country’s finance minister is as the governor from his respective country.

History

Created on July 22, 1944.Came into existence on December 27, 1945 when 29

countries signed the Articles of Agreement.The IMF's stated goal was to stabilize exchange rates and

assist the reconstruction of the world’s international payment system post World War II.

In 1947, France became the first country to borrow from the IMF

As of January 2012, the largest borrowers from the fund in order are Greece, Portugal, Ireland, Romania and Ukraine.

Why was it created?

The IMF was conceived in July 1944, when representatives of 45 governments meeting in the town of Bretton Woods, New Hampshire, in the north-eastern United States, agreed on a framework for international economic cooperation.

MEMBERSHIP

ORDINARY MEMBERS:All those who became its members subsequently.

ORIGINAL MEMBERS: All those countries who agreed to be the members of the fund prior to 31st December,1945.

Eligibility for membership in IMF

Any country can become the member of IMF but for getting eligibility the procedure is adopted by IMF

First of all membership is accepted by board of directors

After accepting membership, board of directors send this proposal to board of governors with supported all documents

All documents and subscription and quota amount as per the terms of membership.

Objectives

To promote international monetary cooperation.

To facilitate the expansion of international trade.

To ensure stability to foreign exchange rates.

To reduce disequilibrium in the international balance of payments of member countries.

To promote capital investment in backward and underdevelopment countries.

Functions

Providing short terms credit to members for meeting temporary difficulties due to adverse balance of payments.

Reconciling conflicting claims of member countries. Providing a reservoir of currencies of member-countries

and enabling members to bor row on another's currency. Credit tranches Promoting orderly adjustment of exchange rates. Advising member countries on economic, monetary and

technical matters.

Operations

The IMF has shown great interest in the economic development of under development countries

The IMF has promoted exchange rate stability and expansion of world trade.

It has provided an excellent forum for the discussion and solution of economic, fiscal and financial problems having an international impact.

The IMF has granted undue credit to some countries. Its insistence on devaluation in some cases proved ill advised.

It has been charged as being partial to developed countries and not helping adequately the under developed countries.

Membership of the IMF (Date of entry into force: December 27, 1945)

Chronological List(of some Member Countries)

Member Effective Date of Membership

Belgium December 27, 1945

Italy March 27, 1947

Canada December 27, 1945

China December 27, 1945

Egypt December 27, 1945

Philippines December 27, 1945

France December 27, 1945

Greece December 27, 1945

Turkey March 11, 1947

Iceland December 27, 1945

Pakistan July 11, 1950

Resources

QUOTAS:The fund has general account based on quotas allocated to its members.

FUND BORROWING: It was in force from October 1962 to December 1998 . At that time its total borrowing was SDR 17 billion.

PAKISTAN AND IMF

Since 1988, Pakistan has not enjoyed smooth relations with the IMF Because of the latter's dissatisfaction with the economic performance of Pakistan.

Pakistan signed several agreements with the IMF, but due to a variety of factors most of them remained incomplete.

The IMF, has played a crucial role in the macro economic stability of Pakistan since 1988

Recent Activities

IMF Executive Board Completes First and Second Reviews Under Extended Fund Facility Arrangement for Greece and Approves €3.24 Billion Disbursement. (January 16, 2013)

http://www.imf.org/external/np/sec/pr/2013/pr1313.htm The IMF’s Executive Board has approved the renewal of

Mexico’s Flexible Credit Line (FCL) for $73 billion. In its latest assessment of the Mexican economy, the IMF said growth has remained resilient, noting the country’s strong fundamentals and sound policy frameworks and management. (December 11, 2012)

http://www.imf.org/external/pubs/ft/survey/so/2012/car121112a.htm