imf full final ppt

8/19/2019 IMF Full Final Ppt

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IMF – International MonetoryFundMarch 07, 2016

Presented By: (GroupI

!noop "u#ar $har#a(%20!darsh &ha''ed(%11!poora $har#a (%22

)ahul Gupta(%*2$aura+h er#a (


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Ideal )ole o/ the Fund

eelop#ent o/ a country reuires an

ino3 o/ priate /orei4n sain4s Ino3 3ould coer a current account

de5cit o/ten caused +y i#port o/ capital4oods

ccasionally, this priate /orei4n sain4sdisappears)esultin4 in a +alance o/ pay#ents

crisis

In these instances IMF steps inMe#+er dra3s on its resere and credittranches

)epayin4 credit tranche de+ts in 5e yearsti#ehus, IMF o8ers short9ter# credit,

steppin4 in to replace priate /orei4nsain s on those rare occasions


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istory

Great epression o/ the 1;


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he Bretton =oods !4ree#ent(B=!

IMF 3as /or#edthrou4h the

B=!:

B=! 3as conceiedin >uly 1;%% International

Monetary Fund(IMF /or#ale?istence 3as inece#+er 1;%*

Par alue syste#

@nd o/ Bretton=oods syste#

(1;72–A1 :

he syste# dissoled+et3een 1;6A91;7


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IMF Beco#in4 a CniersalInstitution:

he /all o/ the Berlin 3all in 1;A; @?pansion to /ul5ll responsi+ilities $oiet Bloc- ransition e+t relie/ /or poor countries


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IMF is an international 5nancial or4aniDationco#prised o/ 1A< #e#+er countries

he IMF en4a4es in /ollo3in4 actiities:

@cono#ic sureillance or #onitorin4 ispensin4 o/ policy adice Eendin4 echnical assistance @?chan4e rate sta+ility +alance o/ pay#ents diseuili+riu#

4ro3th o/ international trade

he Most I#portant /eature o/ IMF isuota syste#


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!d#inistratie $tructure


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ranche

I/ an IFM #e#+er /aces +alance o/

pay#ents diculties&an auto#atically +orro3 one /ourth o/

its uota in the /or# o/ a resere tranche

=hen the IMF lends to a #e#+er

country, 3hat actually happens isdo#estic country purchases internationalreseres /ro# the IMF usin4 its o3ndo#estic currency reseres

Me#+er country is then o+li4ed to repay IMF+y repurchasin4 its o3n do#estic currencyreseres 3ith international resere assets

IMF lendin4 is -no3n as a Hpurchase9repurchase arran4e#ent


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&redit tranchesri4inally, each 3ere eual to J o/ the

#e#+ersK uotas

In the late 1;70s, credit tranches 3ereincreased to


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IMF Eendin4


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$pecial &redit Facilities


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$uccess Failures

$uccess/ul operationsBailout o/ Me?ico (N;*

Bailout o/ "enya

Bailout o/ BraDil (N;A

Bailout o/ !sia (N;A

Bailout o/ !r4entina (2001

FailuresBailout o/ )ussia (N;A

Bailout o/ Greece (2012

12


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&urrent &hallen4es /or the IMF

&ontinued Glo+aliDation (200*9present IMF should re#ain prepared /or a #ore

unsta+le 3orldra#atic chan4e o/ 3orld econo#y

since the creation o/ the IMF! sharp rise in priate international

capital o3s$peed o/ capital account crises Icelandic Financial &risis


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Future o/ IMF

IMF $ets ut a $trate4y /or Financial$ureillance Identi/y potentially dan4erous

i#+alances in the 4lo+al econo#y earlyon, and encoura4e countries to ta-e

action to reduce those i#+alances$ere as re/eree /or disputes oer

e?chan4e rates&oordinate the proision o/ crisis

liuidity conditioned on necessary policyad'ust#ents 3hen the uncoordinatedactions o/ #ar-et participants results inliuidity runs that could 4ie rise tocostly crises


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han- Oou

imf full final ppt

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