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Exercises · Q2

Q.State any four objectives of the International Monetary Fund.

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✓ Free question

The IMF's Articles of Agreement set out several interlinked objectives:

  1. Promote international monetary cooperation through a permanent institution providing a forum for consultation on monetary problems.
  2. Facilitate the expansion and balanced growth of international trade, and thereby contribute to high employment and real income across member countries.
  3. Promote exchange-rate stability, maintain orderly exchange arrangements among members, and avoid competitive currency depreciation.
  4. Assist in establishing a multilateral system of payments for current transactions and work to eliminate foreign-exchange restrictions that hamper trade.
  5. Give confidence to members by making the Fund's resources temporarily available, under adequate safeguards, to correct balance-of-payments difficulties without resorting to measures destructive of national or international prosperity.

Any four of these together capture the Fund's core purpose: a stable, cooperative monetary system that supports (rather than obstructs) growing world trade.

✓Final answer

Any four of: promoting monetary cooperation; facilitating balanced growth of trade; promoting exchange-rate stability; establishing a multilateral payments system free of restrictions; and providing resources to correct members' balance-of-payments difficulties.

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