INTERNATIONAL MONETARY FUND
The establishment of an International 1 monetary Fund was the outcome of a conference held at Bretton rood. Hampshire, 10 the summer of 1944. The main purposes for which the I. I.F. was set up ere to provide exchange stability., temporary assistance to counts falling short of f reign exchange and micronational sponsoring of measures for curing fundamental causes of disequilibrium ill balance of payments. TIle I.M.F. is a pool of central bank reserves and national currencies which are available to its members under certain conditions. It can be regarded as an extension of the central bank reserves of the member-countries.
PURPOSES AND OBJECTIVES
(1 (To promote international monetary operation through a pennant institution.
(2) To facilitate the expansion and balanced growth of international trade, and to contribute thereby to the promotion and maintenance of high levels of employment
of the member-countries.
(3) To promote exchange stability, to maintain orderly exchange arrangements among members. and to avoid competitive exchange depreciation
(4) To assist in the establishment of a multilateral system of payments in respect of current transaction between members and in the inclination of foreign exchange restrictions.
(4)To give confidence to members by making the Fund’s resources available to them under adequate safeguards, thus providing them with opportunity to correct maladjustment in their balance of payments without resorting to measures destructive of national “or international prosperity (e.g., deflationary policies).
(5) In accordance with the above, to shorten the duration anti the degree of disequilibrium in the international balance of payments of members.