Membership of IMF

Any country can become a member of IMF by fulfilling certain terms and conditions. Initially the application of membership will be considered by the Executive Board. After that, if the Board is satisfied than it will submit a report along its recommendations about subscription, amount of quota and other terms and conditions, to the Board of Governors. The Board of Governors then ask the applicant country to fulfill the obligations of IMF membership required to sign the IMF's articles of agreement

Functions of IMF

The functions of funds are as follows:

Establishment of Par value:
Every country determines the par value of the currency in terms of dollars or gold. IMF can alter those parties, when required to preserve the International equilibrium.

Assistance to Members:
IMF provided assistance to members in times of financial crisis. This assistance is provided by the way of following schemes:
BCF (Basic Credit Facility)
SAF (Structural Adjustment Facility)
ESAF (Enhanced Structural Adjustment Facility)

Gold management:
IMF also plays a role in managing gold reserves of member countries/

Information services:
IMF also provides information, technical services and policy advice to monetary authorities of member countries.

Cooperation with other institutions:
IMF also maintains contact with other International monetary institutions and helps them in achievement if mutual objectives.

Objectives of IMF

The objectives are as Follows:

• To promote co-operation among economies of world.
• To strengthen the economies of member countries by making fund's resources available to them.
• To promote exchange stability and to facilitate the expansion and balanced growth of International trade.
• To lesson the chances of disequilibrium in the international BOP of member countries.
• To reduce the poverty in member countries and to promote high employment by facilitating sustainable economic growth.