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SS3: ECONOMICS - 2ND TERM

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  1. Balance of Payment I | Week 1
    4 Topics
  2. Balance of Payment II | Week 2
    4 Topics
  3. Economic Growth & Development | Week 3
    1 Topic
    |
    1 Quiz
  4. Economic Development Planning | Week 4
    2 Topics
    |
    1 Quiz
  5. International Economic Organisations I | Week 5
    4 Topics
  6. International Economic Organisations II | Week 6
    6 Topics
    |
    1 Quiz
  7. Current Economic Plans | Week 7
    5 Topics
    |
    1 Quiz
  8. Economic Development Challenges | Week 8
    4 Topics
  9. Economic Reform Programs | Week 9
    5 Topics



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The IMF was established under the Bretton Woods Agreements of 1944. It was created shortly after the Second World War. The International Monetary Fund (IMF) began operations in 1947. At its inception, the IMF had a total membership of 44 countries. Since then, the membership has expanded with the inclusion of most developing countries which were not independent at the time it was established. It was established to encourage banks and stabilize the exchange rates 

Aims and Objectives of the International Monetary Fund (IMF)

1. To stabilize exchange and finance balance of payment deficit.

2. To promote international monetary cooperation through a permanent institution.

3. To promote exchange stability

4. To promote international monetary cooperation through a permanent institution

5. To continue to the development of the productive resources of all members nations

6. To help developing nations pay their trading partners in foreign currency

7. To make recommendations to member states and serve as a clearing house for members

8. To provide financial aid to member nations experiencing balance of payment difficulties.

9. It was set up to promote economic and financial cooperation among members in order to facilitate the expansion and balanced growth of world trade.

Functions of the International Monetary Fund (IMF)

1. To promote economic and financial cooperation among members in order to facilitate the expansion and balanced growth of the world trade

2. To provide technical specialist to countries that are having difficulties

3. To conduct training and re-training of personnel on fiscal and monetary policies

4. To provide short term finance to relieve member countries

5. To render advice and maintain growth of international trades

The Operation of the International Monetary Fund (IMF)

Countries that are experiencing balance of payment problems run to International Monetary Fund (IMF) for loans to offset the balance of payment deficit. At the initial stage, limited unconditional funds were made available through the IMF reserve. But from then on, borrowing becomes a progressive intricate process whereby the IMF begins to impose adjustment programmes which it sees as the only way of ensuring financial discipline and balancing the books effectively.

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