State and explain the objective of International Monetary Fund (IMF)
- To promote international monetary co-operation.
- To ensure balanced international trade. It increases international liquidity through the special drawing rights (SDRs) facility where each member has an allocation with the IMF which it can use to settle debts
- To ensure exchange rate stability
- To eliminate or to minimize exchange restrictions by promoting the system of multilateral payments.
- To grant economic assistance to members countries for eliminating the adverse balance of payment through lending.
- To minimize the imbalances in quantum and duration of international trade
- To give advice to member countries on economic policy
- To give technical assistance to countries which require highly skilled manpower
- To assist countries to restructure their economies through structural adjustment facility.
- To compensate countries which experience a decline in export due to natural calamities e.g. drought, floods
- To assist countries to get loans for financing development projects approved by IMF. This is done through stand-by- arrangements where IMF gives loans recommendation to such countries which can borrow from other countries or from financial institution.
CATEGORIES Economics
TAGS Dr. Bbosa Science
