🌐 IMF (International Monetary Fund) — Explained
The International Monetary Fund (IMF) is a global financial institution that helps maintain the stability of the international monetary system.
🏛️ Basic Information:
| Feature | Description |
|---|---|
| Full Name | International Monetary Fund |
| Founded | July 1944 (at Bretton Woods Conference) |
| Headquarters | Washington, D.C., USA |
| Members | 190 countries (as of 2025) |
| Managing Director | Kristalina Georgieva (as of 2025) |
| Main Goal | Promote global economic stability and growth |
🎯 Key Functions of the IMF:
- Financial Assistance
- Provides loans to member countries facing balance of payments problems
- Example: Sri Lanka, Argentina, Pakistan have recently received IMF support
- Surveillance
- Monitors global and national economies
- Publishes reports like World Economic Outlook (WEO) and Article IV Consultations
- Technical Assistance & Training
- Helps countries improve tax systems, banking regulations, economic statistics, etc.
- Currency Stability
- Works to maintain exchange rate stability and avoid currency devaluation wars
💰 Where does the IMF get its money?
- From member country quotas (based on size of the economy)
- These quotas also determine voting power and how much a country can borrow
🏦 IMF vs. World Bank – Key Difference:
| IMF | World Bank |
|---|---|
| Ensures monetary stability | Focuses on long-term economic development |
| Gives short/medium-term loans | Provides long-term project financing |
| Mainly deals with balance of payments | Deals with poverty, education, infrastructure |
🌍 Examples of IMF in Action:
- Greece (2009–2018): IMF supported Greece during the Eurozone debt crisis
- Pakistan (2019–2024): Ongoing Extended Fund Facility to stabilize economy
- Bangladesh (2023): Approved $4.7 billion loan for economic reform and climate resilience
🧠 Summary:
- IMF = Global economic doctor
- Offers advice, loans, and training to countries in economic trouble
- Works to prevent financial crises, support stable currencies, and promote growth