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SUBMITTED BY SUGANDHI NAGPAL :

SUBMITTED BY SUGANDHI NAGPAL PRESENATATION ON INTERNATIONAL MONETARY FUND

Establishment of IMF IMF was founded on 27th december,1945. During the closing years of World War Second, different countries realized that there must be a common International Forum for achieving economy cooperation, promoting International Trade and providing help to needy nations during emergency. So IMF was formed for this purpose.:

Establish ment of IMF IMF was founded on 27 th december,1945. During the closing years of World War Second, different countries realized that there must be a common International Forum for achieving economy cooperation, promoting International Trade and providing help to needy nations during emergency. So IMF was formed for this purpose.

World War Second has its adverse effect on global economy. To remedy the situation, an international monetary conference was convened in 1944, at Bretton Woods in America. It was attended by the represenatives of 44 countries. India also participated therein. It was decided in this Conference to set up IMF for the economic development of all countries.:

World War Second has its adverse effect on global economy. To remedy the situation, an international monetary conference was convened in 1944, at Bretton Woods in America. It was attended by the represenatives of 44 countries. India also participated therein. It was decided in this Conference to set up IMF for the economic development of all countries.

In 2007, the number of member countries of IMF was 185. Its headquarters are in Washington DC,USA:

In 2007, the number of member countries of IMF was 185. Its headquarters are in Washington DC,USA

Objectives Of IMF 1) To Promote International Monetary Cooperation 2) To Establishment a System of Multilateral Payments 3) To Maintain Stability in the Rate of Exchange 4) To Abolish Exchange Restrictions :

Objectives Of IMF 1) To Promote International Monetary Cooperation 2) To Establishment a System of Multilateral Payments 3) To Maintain Stability in the Rate of Exchange 4) To Abolish Exchange Restrictions

5) To Provide Aid to Members during emergency 6) To reduce Disequilibrium in Balance of Payments 7) To help in Profitable Investment of Capital 8) To promote balanced economic development:

5) To Provide Aid to Members during emergency 6) To reduce Disequilibrium in Balance of Payments 7) To help in Profitable Investment of Capital 8) To promote balanced economic development

MEMBERSHIP There are two types of members of the Fund 1) ORIGINAL MEMBERS- All those countries whose representatives took part in Bretton Woods Conference and who agreed to be the member of the fund prior to 31st December,1945, are called Ordinary Members :

MEMBERSHIP There are two types of members of the Fund 1) ORIGINAL MEMBERS- All those countries whose representatives took part in Bretton Woods Conference and who agreed to be the member of the fund prior to 31 st December,1945, are called Ordinary Members

2) ORDINARY MEMBERS- All those countries who became its member subsequently are called Ordinary Members. Any country can cease to be its member after giving a notice in writing to that effect . Fund can terminate the membership of such a country which does not observe its rules. In 1945, the number countries was in 44, in year 2007 the number of member countries was 185.:

2) ORDINARY MEMBERS- All those countries who became its member subsequently are called Ordinary Members. Any country can cease to be its member after giving a notice in writing to that effect . Fund can terminate the membership of such a country which does not observe its rules. In 1945, the number countries was in 44, in year 2007 the number of member countries was 185.

FUNCTIONS OF IMF 1) lending for meeting Temporary Unfavourable Balance of Payments Position 2) Purchase and Sale of Foreign Currency 3) Bank of Central Banks 4) Technical Assistance 5) Imparts Training:

FUNCTIONS OF IMF 1) lending for meeting Temporary Unfavourable Balance of Payments Position 2) Purchase and Sale of Foreign Currency 3) Bank of Central Banks 4) Technical Assistance 5) Imparts Training

6) Facilities during emergency 7) Increases International Liquidity 8) Determining Exchange Rate for every Country 9) Poverty Reduction 10) Research Functions 11) Special Lending Facilities of IMF:

6) Facilities during emergency 7) Increases International Liquidity 8) Determining Exchange Rate for every Country 9) Poverty Reduction 10) Research Functions 11) Special Lending Facilities of IMF

SUCCESS OF IMF 1) International Monetary Cooperation 2) Reconstruction of European Countries 3) Multilateral System of Foreign Payments 4) Increase in International Liquidity 5) Increase in International Trade:

SUCCESS OF IMF 1) International Monetary Cooperation 2) Reconstruction of European Countries 3) Multilateral System of Foreign Payments 4) Increase in International Liquidity 5) Increase in International Trade

6) Special Aid to Developing Countries 7) Providing Statistical Information 8) Helpful in Times of Difficulties 9) Easiness & Flexibility in Making International Payments :

6) Special Aid to Developing Countries 7) Providing Statistical Information 8) Helpful in Times of Difficulties 9) Easiness & Flexibility in Making International Payments

FAILURES OF IMF 1) Lack of Stability in Exchange Rate 2) Lack of Stability in the Price of Gold 3) Inability to Remove Restrictions on Foreign Trade 4) Rich Nations Club 5) No help for development projects :

FAILURES OF IMF 1) Lack of Stability in Exchange Rate 2) Lack of Stability in the Price of Gold 3) Inability to Remove Restrictions on Foreign Trade 4) Rich Nations Club 5) No help for development projects

6) No Solution of International Liquidity 7) Interference in Domestic Economies 8) Inability to tackle the Monetary Crisis of August 1971 9) Less Aid for Developing Countries 10) High Rate of Interest :

6) No Solution of International Liquidity 7) Interference in Domestic Economies 8) Inability to tackle the Monetary Crisis of August 1971 9) Less Aid for Developing Countries 10) High Rate of Interest

ORGANISATION AND MANAGEMENT 1) BOARD OF GOVERNORS: It consists of one Governor and an Alternate Governor for each member country. It meets once a year. It frames the policies of the Fund. 2) BOARD OF EXECUTIVE DIRECTORS: It conducts day to day affairs of the fund. It consists of 24 directors, 6 of whom are permanent directors and other 18 are elected directors.:

ORGANISATION AND MANAGEMENT 1) BOARD OF GOVERNORS: It consists of one Governor and an Alternate Governor for each member country. It meets once a year. It frames the policies of the Fund. 2) BOARD OF EXECUTIVE DIRECTORS: It conducts day to day affairs of the fund. It consists of 24 directors, 6 of whom are permanent directors and other 18 are elected directors.

Permanent directors belong to those countries that have the largest quotas in the fund. Currently these States countries are United States, Britain, France, Germany, Japan and Saudi Arabia. 18 elected directors are elected by member countries. India is one of the elected directors. The Managing Director of IMF is elected by the executive directors:

Permanent directors belong to those countries that have the largest quotas in the fund. Currently these States countries are United States, Britain, France, Germany, Japan and Saudi Arabia. 18 elected directors are elected by member countries. India is one of the elected directors. The Managing Director of IMF is elected by the executive directors

He is the head of IMF staff and is responsible for its organisation. Major decisions of IMF are taken with consent of 85 per cent voting.:

He is the head of IMF staff and is responsible for its organisation. Major decisions of IMF are taken with consent of 85 per cent voting.

CAPITAL The Capital resources of the fund are subscribed by the various member countries by way of their respective quotas. Each members quota is determined before its enrolment as a member. Each Member country is required to subscribe its quota partly in gold and partly in its own national currency. :

CAPITAL The Capital resources of the fund are subscribed by the various member countries by way of their respective quotas. Each members quota is determined before its enrolment as a member. Each Member country is required to subscribe its quota partly in gold and partly in its own national currency.

The 25% of quota is to be subscribed in gold or it may be 10% of the total gold stock and US dollars held with its central bank, whichever is less and remaining amount of quota is subscribed in its national currency. Total Capital of the fund in 1945 was 880 crore dollars. Since 2000, its capital has been raised to 27,000 crore dollars.:

The 25% of quota is to be subscribed in gold or it may be 10% of the total gold stock and US dollars held with its central bank, whichever is less and remaining amount of quota is subscribed in its national currency. Total Capital of the fund in 1945 was 880 crore dollars. Since 2000, its capital has been raised to 27,000 crore dollars.

In the year 2000, total Special Drawing Rights quota of fund was 21,260 crore SDRs. Voting Power of each member country depends upon the size of its quota in SDRs. Minimum number of votes of a country is fixed at 250.:

In the year 2000, total Special Drawing Rights quota of fund was 21,260 crore SDRs. Voting Power of each member country depends upon the size of its quota in SDRs. Minimum number of votes of a country is fixed at 250.

IMF AND INDIA India is a founder member of IMF. Earlier India was made a permanent Executive Director of the Board of Directors. At present India is no longer a permanent director. India is now an elected member of IMF. India’s rank is 13th among 185 member nations. :

IMF AND INDIA India is a founder member of IMF. Earlier India was made a permanent Executive Director of the Board of Directors. At present India is no longer a permanent director. India is now an elected member of IMF. India’s rank is 13 th among 185 member nations.

ADVNANTAGES FROM MEMBERSHIP OF IMF TO INDIA 1) Facility of Foreign Exchange 2) Freedom from British Pound 3) Membership of the World Bank 4) Importance of India in International Sector 5) Economic Consultation:

ADVNANTAGES FROM MEMBERSHIP OF IMF TO INDIA 1) Facility of Foreign Exchange 2) Freedom from British Pound 3) Membership of the World Bank 4) Importance of India in International Sector 5) Economic Consultation

6) Help during Emergency 7) Financial help for five Year Plans 8) Special Drawing Rights 9) Help in Foreign Exchange Crisis 10) Profit from Sale of Gold :

6) Help during Emergency 7) Financial help for five Year Plans 8) Special Drawing Rights 9) Help in Foreign Exchange Crisis 10) Profit from Sale of Gold

THANK YOU:

THANK YOU

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