International Monetary Fund (IMF) is an international organization of 190 member countries that promotes international financial stability and monetary cooperation. The IMF was conceived in July 1944 at the UN Bretton Woods Conference along with the World Bank.
The IMF gives advice on how to achieve economic stability, prevent financial crises, and improve living standards. It provides financial support and works with governments to ensure responsible spending. The organization works with member countries to modernize their economic policies and institutions. Member quotas are the primary source of IMF financial resources. A member’s quota depends upon its size and position in the world economy.
The International Monetary Fund became a specialized agency of the United Nations in 1947. It has its headquarters in Washington D.C. The major functions of the IMF include surveillance, technical assistance, training, research and data, and lending to countries with disequilibrium in the balance of payments.
Objectives of the International Monetary Fund
- To promote international monetary cooperation,
- To facilitate the expansion and balanced growth of international trade,
- To promote high employment and sustainable economic growth,
- To secure financial stability,
- To reduce poverty around the world,
- To reduce the degree of disequilibrium in the international balance of payment.
International Monetary Fund and Nepal
Nepal joined the IMF on 6th September 1961, and it started taking assistance from IMF in 1962. The organization has been providing Nepal with financial and technical assistance as well as policy advice. IMF along with the World Bank is helping Nepal reduce poverty through Poverty Reduction Strategy Paper (PRSP).
Nepal’s Special Drawing Rights at the IMF stand at just 71.3 million SDR. The IMF’s technical assistance to Neal since 2002 covers the areas of accounting, central bank, and banking reform, monetary policy and tax policy review, tax and customs administration reform, fiscal transparency legislation, etc.