Objectives of International Monetary Fund (IMF)
Twenty nine countries initially signed the IMF agreement. There were 184 member countries at the beginning of 2005. Now the IMF is governed by and accountable to its 189 member countries.The IMF, organization to promote exchange rate stability and facilitate the international flow of currencies according to the article I of Articles of Agreement lays out the organizations objectives:
- To Promote International Monetary cooperation,
- To promote international monetary cooperation through a permanent institution which provides the machinery for consolation and collaboration on international monetary problems.
- To facilitate the expansion and balanced growth of international trade,
- To Promote exchange stability’ to maintain orderly exchange arrangement among members and to avoid competitive exchange depreciation.
- To assist in the establishment of a multilateral system of payment.
- To give confidence to the members by making the general resources of the IMF temporarily available to them and to correct adjustment in their balance of payments.
- To shorten the duration and lessen the degree of disequilibrium in the International balance of payments of members.
- Maintain policy advice to governments and central banks based on analysis of economic trends and cross-country experiences;
These are the main objectives of international monetary fund for which it is established.