Question

Discuss its various objectives and functions.

Answer 1

Objectives of the IMF

(a) To aid the balanced growth of international trade and market, thereby promoting the growth of employment and income

(b) To promote international monetary cooperation among the member countries

(c) To facilitate the orderly exchange of goods between the member countries

(d) To facilitate international payments with respect to the exchange transactions between the member countries

Functions of the IMF

(a) Providing short-term credit to member countries

(b) Maintaining stability in the exchange rate of the member countries

(c) Fixing and altering the value of a country’s currency whenever required, to facilitate the adjustment of the exchange rate of member countries

(d) Collecting the currencies of member countries so as to allow them to borrow the currency of other nations

(e) Lending foreign currency to member nations and facilitating international payments with respect to the exchange transactions between member countries.