INTERNATIONAL MONETARY FUND
The IMF translated to the International Monetary Fund is one of the leading financial and lending institutions in the world. This article gives you a low down on the interesting facts about the IMF that few people might know.
Interesting Facts About IMF
- The World Bank and the IMF were both formed in the same year and as a result of the same conference known as the Bretton Woods Conference.
- In the year 1944, when the IMF was established, the global powers at the time aimed to establish a new global economic order once the World War had ended.
- Initially the purpose of the creation of the International Monetary Fund was to act as a credit union and watch over the values of the world’s currency.
- The voting power in the IMF is largely dependent on the economic power of the countries.
- Nearly 30 countries that make up the OECD, i.e. the Organization for the Economic Cooperation and Development, control nearly two thirds of the votes in the IMF.
- On top of that, the Great 8 countries control nearly 50% of the voting rights in the IMF.
- The largest portion of voting rights is granted to the US.
- The share of the US in the IMF is higher than that of Japan, France, and Germany combined.
- The IMF is run by way of a board of directors.
- The Board of directors is made up of 24 directors.
- 8 countries namely the US, Japan, Germany, France, United Kingdom, Saudi Arabia, China, and Russia all have their own member to the board of directors.
- For other countries, however, there are blocs formed and they have to choose one of the countries from the bloc to have their representatives on the board for a time being.
- The fact that the US’s Board of Director has a voting right of 17.14% allows them a veto power on any and all decisions made effectively.
- The IMF and the World Bank typically work alongside one another and have produced their annual perception on the economic environment of the world In the Global Monitoring Report.
- Currently, the list of countries that have received some sort of loan or monetary help by the IMF is extensive. Some of the countries on their list are Mexico, Grenada, Yemen, Pakistan, Tunisia, Solomon Islands, Ukraine, Cyprus, Ghana, Mali, Burkina Faso etc.
- The largest number of IMF loans have gone to the African Continent
- The Headquarters of the IMF is in Washington DC.
- At the time of being founded, the organization had around 29 member states.
- The number has risen up to almost 188 today.
- The official language of operation and correspondence at the IMF is English
- Currently, the fund is headed by Christine Lagarde
- Back in 2010, the fund had around $755.7 billion.
- The IMF has a team that imposes strict requirements on the country seeking loan from it.
These are some of the most common facts about the IMF most of which you may not have known.