International Monetary Fund

By:

James Knight

James is a lead editor for Invezz, where he covers topics from across the financial world, from the stock… read more.

Updated: Aug 20, 2021

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

One of the fruits of the Bretton Woods Agreement in 1944. The Fund was formed in 1946 and began to operate in 1947. Its object is to maintain and stabilize rates of exchange and facilitate multilateral clearing systems, and also to eliminate unnecessary restrictions on foreign trade. It has the power to advance money to countries in balance of payment difficulties: it will supply a country with the currency it needs in return for that country’s own currency There is a repayment period of about five years. It also gives countries credit guarantees, that is, without actually lending, it agrees to lend, if asked. These facilities are obviously only available to member couny y contributions according to an estimate of contributions according to an estimate of the higher the voting rights. The amount paid in is partly in gold and partly in the currency of the country.

Reference: The Penguin Business Dictionary, 3rd edt.