Functions and Roles of the International Monetary Fund
The organization sought to rebuild Europe after world war ll. The statutory goal of the IMF is to oversee exchange rates, give financial and technical assistance to the member countries and to address global economic problems. Its headquarters is located in Washington, D. C. , USA. The IMF has a Board of Governors, composed of as many governors as there are member states; 24 executive directors; and a managing director and staff. All powers of the IMF are vested in its Board of Governors on which all member states are represented.
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The Board of Governors is responsible for basic things such as the admission of new members, quota changes and more, but it delegates most of its powers to the Executive Directors of the Fund. The 24 executives and the (24 alternates) make up the Executive Board and it is responsible for the Funds general operation. The Executive Board gets its orders from the Board of Governors. The managing director is chosen by the executive directors and is responsible for conducting the ordinary business of the Fund and for cheering the meetings of the executive directors.
The staff is consisted of about 2650 persons from 140 countries. The IMF fundamental mission is to help ensure stability in the international system. It does this in three ways: surveillance, lending, and by giving technical assistance. The IMF oversees the international monetary system and monitors the economic policies of its members. It keeps track of economic development on a national, regional and global basis, consulting frequently with member countries and providing them with macroeconomic and financial policy advice.
The IMF provides loans for countries that have problems meeting their international payments and cannot otherwise find sufficient financing on affordable terms. The IMF also provides concessional loans to low income countries to help them develop their economies and reduce poverty. By giving technical assistance, the IMF provides practical guidance to mainly low and middle- income countries on how to effectively manage their economies by training them on how to upgrade institutions, and help design appropriate macroeconomic, financial, and structural policies.