IMF

The IMF, International Monetary Fund, was born in July 1944, in Woods, New Hampshire, United States, at the same time as the World Bank, although it began its activity three years later. It is headquartered in Washington, DC, United States.

In its beginnings, the IMF's objective was to defend the fixed exchange rate system, trying to avoid a repetition of the devaluations prior to the depression of the 1930s. Subsequently, its main financial function is to grant credits to member countries experiencing balance of payments difficulties, which must then introduce reforms aimed at solving the problems that caused the crisis.

Thus, when the International Monetary Fund intervenes in a country in crisis by granting it a loan, it imposes adjustment programs.

Among the IMF's objectives are the following:

• To support international monetary cooperation.
• To promote international financial stability, ensuring the international payment system and exchange rates.
• To reduce poverty in the world.
• Collaborate in the improvement of international trade.
• To provide members, upon request, with financial resources to help correct imbalances in their economies.

The IMF's capital is the result of the contributions of its 183 member countries, which reflect the position of each one of them in the world economy and which total 210 billion Special Drawing Rights (SDRs) or 300 billion dollars. SDRs are international reserve assets issued by the IMF

Each member can apply for an amount of SDRs, assets exchangeable for foreign exchange, in proportion to the quota it contributes to the International Monetary Fund.