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:
- Promote international monetary cooperation through a permanent institution providing a forum for consultation on monetary problems.
- Facilitate the expansion and balanced growth of international trade, and thereby contribute to high employment and real income across member countries.
- Promote exchange-rate stability, maintain orderly exchange arrangements among members, and avoid competitive currency depreciation.
- Assist in establishing a multilateral system of payments for current transactions and work to eliminate foreign-exchange restrictions that hamper trade.
- 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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