OTHERS

Functions of the International Monetary Fund

Before starting with the topic, Let us firstly know, ‘What is the International Monetary Fund?” International Monetary Fund or IMF is an international organization which is working with the motive of developing monetary cooperation, secure financial stability, promote high employment and many more… The main purpose of IMF is to ensure the stability of the International Monetary System across different countries. International Monetary Fund was established in the year 1944, by the ideas of Harry Dexter White and John Maynard KeynesIt came into existence in the year 1945 with a total of 29 countries only, but currently, it consists of 189 Countries. 

Now, moving towards our main topic i.e., Functions of the International Monetary Fund. 

  1. Loan of Foreign Currency
  • we know, The IMF ensures the stability of the Monetary System across different countries, the IMF provides a loan to countries whose Monetary system is unstable. The IMF provides the sum of the amount in the same currency which is used in the country.
  1. Liquidity of Fund Resources
  • International Monetary Fund (IMF) defines funding liquidity as “the ability of a solvent institution to make agreed-upon payments in a timely fashion”. 
  1. Central Bank’s Bank
  • is an organization that provides funds to different countries to stabilize their monetary system. The country has an unstable monetary system that takes a loan from the IMF to stabilize its economy. In such a situation, the IMF act as a Banker’s Bank.
  1. Currency InShort Supply
  • Currency shortage occurs when a country lacks a sufficient supply of their currency to manage its international trade effectively. This situation occurs when a country has to pay out more amount for its imports than the amount of currency receives from its exports. IMF provides the amount deficit to the country in terms of the loan.

Ankit Jain

TIAS

New Delhi

The 5th InTraders International Conference On International Trade, 13-17 April 2020, İstanbul, Turkey

Rashmi Gujrati

Prof. Dr. Rashmi Gujrati , Professor-Dean (International Affairs) CT University, India President-Editor-In-Chief Tradepreneur Global Academic Platform, UK (Institution of Research & Development) Qualification: M.com, MBA, Ph.D. Specialization: Marketing, Finance & International Business, Entrepreneurship. Editor-In-Chief International Journal of Business Operation Editorial Board member of (IJEFMS) Science Publish Group, USA Editorial Board Member of Academic for Global Business Advancement Association, USA Reviewer of Common Ground Research Networks University of Illinois, USA Reviewer IBIMA Association, Spain Scientific Review Committee, Advisory Board Member of AASE Member Chung Yuan Christiana University, Taiwan Scientific Board Member of InTraders Academic Platform, Turkey Editorial Board Member of Journal of Agriculture, Food, Environment and Animal Sciences, Turkey Indian Commerce Association Indian Accounting Association Indian College Principals Association Review & Editorial Committee Board Member Laescuela Education Scientific Committee Member of Research Synergy Foundation (RSF) Indonesia Editorial & Review Committee member FSSER Malaysia Editorial & Review Committee member GI-SSF Malaysia +919759347347

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