International Monetary Fund

A Dictionary of Finance and Banking, January, 1997

International Monetary Fund (IMF) A specialized agency of the United Nations established in 1945 to promote international monetary cooperation and expand international trade, stabilize exchange rates, and help countries experiencing short-term balance of payments difficulties to maintain their exchange rates.

The Fund assists members by supplying the amount of foreign currency it wishes to purchase in exchange for the equivalent amount of its own currency. The member repays this amount by buying back its own currency in a currency acceptable to the Fund, usually within three to five years (see also SPECIAL DRAWING RIGHTS ). The Fund is financed by subscriptions from its members, the amount determined by an estimate of their means. Voting power is related to the...

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