What is IMF ?
IMF is UNO recognized international monetary fund or reserve which helps its members. It established in 1946 after bretton wood meeting. It has 185 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. There are two type directors in board of directors of IMF. One is quota and other is non quota. USA, UK, Germany and India are quota country and one member is taken in board of directors and other from non quota countries. Total no. of directors are 20.
Objective and functions of IMF
- Provide loan to the members for removing unfavorable balance of payment.
- Determine the value of currency of member countries.
- Determine the economic policies’ main contents of member’s countries.
- To make plan for increasing per capita income of member countries.
- To collect money from member countries in the form of fun or reserves.
- Latest objective in IMF is that it will support 3 trillion dollars under his budget for decreasing the pressure of 2000 recession.
Eligibility for membership in IMF
Any country can become the member of IMF but for getting eligibility the following 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 and subscription and quota amount as per the terms of membership .