International Monetary Fund (IMF), United Nations (UN) specialized agency , founded at Bretton Woods Conference 1944 to secure international monetary cooperation , to stabilize currency exchange rates, and to expand international liquidity (access to hard currencies ).
Origins Of International Monetary Fund
The first half of the 20th century was marked by two world wars that caused enormous physical and economic destruction in Europe and a Great Depression that wrought economic devastation in both Europe and the United States . These events kindled a desire to create a new international monetary system that would stabilize currency exchange rates without backing currencies entirely with gold ; to reduce the frequency and severity of balance-of-payments deficits (which occur when more foreign currency leaves a country than enters it ); and to eliminate destructive mercantilist trade policies, such as competitive devaluations and foreign exchange restrictions - all while substantially preserving each country ability to make their policies. In Bretton Woods delegates of 44 countries sign on the article for the agreement of international monetary fund
Structure of IMF
It is headed by a board of governors, each governor represent approximately 180 member states . Eight directors represent individual countries (China, France , Germany , Japan , Russia, Saudi Arabia , the UNITED kingdom , and the United States), and the other 16 represent the fund's remaining members, grouped by word regions
Operation Of IMF
Since its creation , the IMF's principal activities have included stabling the currency exchange rate and providing advice and technical assistance to borrowing countries