The International Monetary Fund (English: International Monetary Fund, IMF) was established on December 27, 1945. It is one of the two major financial institutions in the world. Its responsibility is to monitor currency exchange rates and trade conditions of various countries. , provides technical and financial assistance to ensure the normal operation of the global financial system, and is headquartered in Washington.
On November 5, 2010, International Monetary Fund (IMF) President Ka-N announced on the 5th that the IMF Executive Board passed the quota reform plan on the same day. After the quota reform is completed, China's share will rise from the current 3.72% to 6.39%, and its voting rights will also rise from the current 3.65% to 6.07%, surpassing Germany, France and the United Kingdom, and ranking behind the United States and Japan. a greater say in international organizations.
1. Purpose of the organization
The purpose of the organization is to promote international monetary cooperation through a permanent institution. Provide methods for consultation and collaboration on international monetary issues; promote and maintain employment, development of productive resources, and high levels of real income in member countries through the expansion and balanced development of international trade as the primary goal of economic policy; stabilize international exchange rates , maintain orderly exchange arrangements among member countries and avoid competitive exchange depreciation; assist member countries in establishing a multilateral payment system for regular transactions and eliminate foreign exchange controls that hinder world trade; with appropriate guarantees, the IMF provides Member states temporarily provide general funds so that they have the confidence to use this opportunity to correct imbalances in the balance of payments without taking measures that endanger national or international prosperity; in accordance with the above purposes, shorten the duration of imbalances in the balance of payments of member states and reduce imbalances degree etc.
2. Membership
Application to join the International Monetary Fund will first be approved by the Fund’s Board of Directors Deliberation. Afterwards, the Board of Directors will submit a "Membership Resolution" report to the Governance Committee, which will recommend how many quotas the applicant country can receive in the fund, as well as the terms. After the governance committee accepts the application, the country needs to amend its laws, confirm the signed membership documents, and commit to abide by the fund's rules. Moreover, the currencies of member states cannot be pegged to gold (cannot be exchanged for the country's gold reserves)
The "quotas" of member states determine a country's dues payable, voting power, The share of financial assistance received, and the amount of Special Drawing Rights (SDR).
China is one of the founding countries of the organization. On April 17, 1980, the International Monetary Fund officially restored China’s representation rights. China's share in the organization is 100 million Special Drawing Rights, accounting for 4% of the total share (data sourced from data released on the IMF official website on June 19, 2012).
On November 6, 2010, the International Monetary Fund passed the reform plan, and China’s voting rights share increased to 6.39%. Since China resumed its seat in the IMF in 1980, it has formed a separate constituency and appointed an executive director. In 1991, the organization established a permanent representative office in Beijing.
The International Monetary Fund is "an organization participated by 188 countries, committed to promoting global financial cooperation, strengthening financial stability, promoting international trade, and helping countries achieve high employment "Efficiency and Sustainable Development", except for North Korea, Liechtenstein, Cuba, Andorra, Monaco, Tuvalu and Nauru, all United Nations member states and only United Nations member states are entitled to become members of the Fund, directly or indirectly.
3. Main functions
Formulating exchange rate policies and current account payments and currencies among member countries Convertibility rules and supervision;
Provide emergency financial facilities when necessary to member states experiencing balance of payments difficulties to prevent other countries from being affected;
Provide member countries with meeting venues related to international monetary cooperation and consultation;
Promote international Cooperation in the financial and monetary fields;
Promoting the pace of international economic integration;
Maintaining international exchange rate order;
Assist member countries to establish a regular multilateral payment system, etc.
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