University:
California State University, Northridge
Course:
FIN 430 | International Financial Management
Academic year:

2023
Views:

209

Pages:

2
Author:

Mahmoud M.

International banking notes Membership in the IMF is open to all countries that manage their foreign relations and are ready and able to fulfill their membership obligations. As one of the most important players in the current international financial system, the IMF was created to maintain its long-term behavior policy and to provide financial assistance to its members with an issue balance. The mission of the IMF is set out in the Articles of Agreement: 1. Ensuring international financial cooperation through a permanent institution that provides a mechanism for mutual discussion and cooperation on international financial matters. 2 To promote the expansion and balance of international trade and to contribute to the main purpose of trade policy, to promote and maintain high employment and real income and to create productive resources for each member. 3. Promote a stable exchange rate, maintain exchange rate among members and avoid price competition between exchanges. 4. Help create more payment methods for existing business of member states and remove foreign restrictions that hinder the development of the world economy. 5. To increase the confidence of members by offering IMF resources as a necessary measure so they have the opportunity to correct the low balance of payments without affecting the main or balance of payments effect. IMF's Goals IMF's goals include promoting the balance of payments in the world economy, stabilizing the exchange rate, avoiding competitive currency devaluations, and correcting the country's balance problems. According to Chapter 1 of the IMF Recommendations, the objectives of the IMF are: To promote international financial cooperation through a stable organization that provides a framework for negotiations and cooperation on international financial matters Enlargement and the balance of international trade, high productivity and real promoting and sustaining income and contributing to the productivity of all members as the primary objective of economic policy. Promote exchange rate stability, maintain exchange rate among members and avoid competitive exchange rate. Build members' confidence by temporarily making IMF's general resources available with safeguards appropriate to them, thus giving the opportunity to adjust the balance of payments without using measures that lead to national or international success. Reducing the duration and size of imbalances in the balance of payments between member countries as above. Services The IMF provides assistance in its core functions; these areas are policy, fiscal and foreign policy and institutions, fiscal policy and management, foreign debt and macroeconomic statistics. The aim of IMF technical assistance is to improve the results of economic and financial policies from and to support the building of productive capacity in member countries. In practice, the IMF achieves this by providing support for capacity building and policy development. Countries strengthen their human and institutional capacities as a way to improve the quality of decision-making, and advises on the design and implementation of macroeconomic and structural policies.