The International Monetary Fund (IMF) is the international organization which thoroughly oversees the global financial system by following the macroeconomic policies of it's member countries, created by Bretton Woods Conference. These are the main aims of IMF. * Helping out the member countries on monetary issues.
* Facilitate the expansion as well as balanced growth in international trade.
* Facilitate the expansion as well as balanced growth in international trade.
* Promote exchange rate stability.
There are 186 member countries and membership in the fund is based on subscription to it's resources in the form of a quota. Quota sizes are determined by a set formula which eye on several factors such as national income, gold and dollar balances, variability of exports, average imports etc. Currently USA has the largest quota and effective veto power over majority decisions.
Forms of IMF Assistance.
* Extended fund facility
* Compensatory financing facility
* Supplementary financing facility
* Enlarged access policy
* Structural adjustment facilities
