GLOBAL ECONOMY
IMF: Tapping growth routes
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he International Monetary Fund (IMF) is an international organization that aims to promote global economic growth, international financial stability and monetary cooperation, encourage international trade and sustainable economic growth and reduce poverty.
The IMF’s primary mission is to ensure the stability of the international monetary system which involves the system of exchange rates and international payments that enables countries to conduct international transactions. This would facilitate the expansion and balanced growth of international trade, promote exchange rate stability, assist in the establishment of a multilateral system of payments; and make resources available (with adequate safeguards) to members experiencing balance-of-payments
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June - July 2020
Pradeep P Philipose difficulties. The IMF functions as a watchdog of the monetary and exchange rate policies vital to global markets.
Any member country can approach the IMF when it faces a crisis situation when it can no longer finance imports or service its debt to creditors. The IMF gives loans to member countries that are struggling to meet their international obligations. This assistance can replenish the international currency reserves of these countries, stabilize their currencies, and strengthen conditions for economic growth. The IMF will extend a loan to such countries and help organize a new debt-repayment schedule that the country can manage. In exchange, the country affected agrees to implement IMF reforms designed to rectify its balance Executive Knowledge Lines
