International Monetary Fund (IMF) is the second international organization next to the World Bank. IMF which came into existence in 1945 has its headquarters located in Washington DC. In 2005, it had 191 countries as its members. The major idea underlying the setting up of the IMF is to evolve an orderly international monetary system. i.e., facilitating system of international payments and adjustments in exchange rates among national currencies.
Major objectives of IMF include
- To promote international monetary cooperation through a permanent institution.
- To facilitate expansion of balanced growth of international trade and to contribute thereby to the promotion and maintenance of high levels of employment and real income.
- To promote exchange stability with a view to maintain orderly exchange arrangements among member countries
- To assist in the establishment of a multilateral system of payments In respect of current transactions between members.