INTERNATIONAL MONETARY FUND

Formation: The International Monetary Fund was set up after the Second World War in order to encourage the development of foreign trade. It began operation in 1947 with headquarters in the United States of America.

The International Monetary Fund was. established as a result of proposals adopted at an international conference held at Bretton Woods in 1944. Presently, it has about 138 member countries. IMF was established to encourage balance of payment equilibrium and to stabilise exchange rate among member countries.

Some IMF Member Countries and their Unit of Currency

• Nigeria – Naira.
• Ghana – Cedis.
• America – Dollars.
• Britian – Pounds.
• The Gambia – Dolasi.
• Liberia – Dollars.
• Benin Republic – CFA.
• Sierra Leone – Leone.

Objectives of IMF

1. To establish and stabilise exchange rate among member nations.
2. To make fund available to members to finance balance of payment deficit.
3. To make recommendations to members concerning economic policies to be adopted.
4. To encourage the development of international trade.
5. To promote co-operation among member countries on financial matters.
6. To facilitate settlement of debts in foreign transactions.