Describe Functions of International Monetary Fund (IMF)

Various functions are performed by the Functions of International Monetary Fund (IMF) to achieve the aforesaid objectives. Some of the important functions of IMF include:

  • Acting as a short term credit institution,
  • Providing machinery for the orderly adjustment of exchange rates;
  • Acting as a reservoir of the currencies of all the member countries, from which a borrower nation can borrow the currency of other nations;
  • Acting as a lending institution of foreign currency and current transaction;
  • Determining the value of a country’s currency and altering it, if needed, so as to bring about an orderly adjustment of exchange rates of member countries; and
  • Providing machinery for inter-national consultations.