The International Monetary Fund (IMF) is a global financial agency founded in 1944. The aim was to promote international monetary cooperation, maintain financial stability, enable global trade, alleviate poverty, and stimulate economic progress. The IMF, headquartered in Washington, D.C., has over 190 member countries.
What International Monetary Fund Does?
The IMF’s principal duty is to monitor the global economy and member countries’ economic policies through economic surveillance. It gives financial aid to countries experiencing balance of payments issues, so assisting in the stabilisation of their economies. This assistance is frequently accompanied by economic reform criteria to ensure that funds are used effectively and that recovery occurs over time. The IMF also provides technical assistance and training to member nations to help them improve their fiscal management, monetary policy, and governance.
Decision-Making Process
The IMF’s decision-making process is based on a weighted vote system, with larger economies having more influence. The IMF plays an important role in global economic crises by providing emergency finance and policy guidance to prevent economic collapse. The IMF’s joint efforts aim to promote economic stability and lower the likelihood of future financial crises.
