International Monetary Fund. Outline. What is the IMF and what does it do? What are the legal implications of membership in the IMF? 1. Purposes 2. Membership and Governance 2. Financial Structure 3. Functions Surveillance Financing Technical Services. Introduction
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What is the IMF and what does it do? What are the legal implications of membership in the IMF?
2. Membership and Governance
2. Financial Structure
Purposes of the IMF are set out in Article I of the Articles of Agreement:
(i) To promote international monetary cooperation through a permanent
(ii) To facilitate the expansion and balanced growth of international trade...
(iii) To promote exchange stability...
(iv) To assist in the establishment of a multilateral system of payments
(v) To make the general resources of the Fund temporarily available to members for balance of payments purposes under adequate safeguards...
(vi) In accordance with the above, to shorten the duration and lessen the degree of disequilibrium in the international balances of payments of members
Membership and Governance Articles of Agreement:
IMF Organization Chart Agreement pursuant to the provisions of Article XXIX
International Monetary and Financial Committee
Joint IMF-World Bank Development Committee
Board of Governors
Independent Evaluation Office
Deputy Managing Directors
3. Financial structure Agreement pursuant to the provisions of Article XXIX
(a) members’ quota subscriptions (currently about $305 billion);
(b) borrowing to supplement the resources available from quotas (e.g., General Arrangements to Borrow (GAB) since 1962; New Arrangements to Borrow (NAB) in 1997);
(c) Income from investments (Article XII, Section 6(f)(i)).
(a) Members’ quotas
4. Functions of the IMF 25 percent must be paid in reserve assets specified by the IMF (foreign currencies acceptable to the IMF or SDRs); the balance may be paid in the member’s own currency
(b) Financing 25 percent must be paid in reserve assets specified by the IMF (foreign currencies acceptable to the IMF or SDRs); the balance may be paid in the member’s own currency
Some other obligations under the Articles of Agreement the basis of quota and the amount of access is normally subject to maximum limits specified by the IMF
(c) Technical assistance Fund and with other members to ensure that the members’ policies with respect to reserve assets shall be consistent with the objectives of promoting better international surveillance of international liquidity