Hello, in October 2016, the RMB was included in the Special Drawing Rights. The International Monetary Fund (English: International Monetary Fund, referred to as: IMF) was established in Washington on December 27, 1945, based on the Agreement of the International Monetary Fund signed at the Bretton Woods Conference in July 1944. It was established at the same time as the World Bank and is listed as the world's two largest financial institutions. Its responsibility is to monitor currency exchange rates and trade conditions of various countries, provide technical and financial assistance, and ensure the normal operation of the global financial system. Its headquarters are in Washington, DC. The "Special Drawing Rights" we often hear was created by this organization in 1969.
Extended information
What are the functions of the International Monetary Fund?
Financial Integration
When member countries encounter difficulties in their balance of payments, they can apply to the Fund for loans of foreign exchange funds. However, its use is limited to short-term economic imbalances. Each member country can use the funds of the fund. The maximum limit is twice the country's assessment, and within this limit, only 25% of the assessment can be used in one year. Later, the Fund has slowly relaxed member states' restrictions on the use of funds to meet actual needs.
Relevant measures
Provide member states’ exchange rates, fund movements and other foreign exchange control measures: Member states’ balance of payments shall not arbitrarily adjust their national currencies unless a basic imbalance occurs. parity. The so-called basic imbalance refers to the imbalance in the balance of payments caused by reasons other than short-term factors such as seasonality, speculation, and economic cycles. Regarding the movement of funds, the Fund stipulates that member states shall not use funds from the Fund to pay for large or sustained capital outflows. Member States may impose controls on such capital outflows, but this shall not hinder external payments for economic transactions.
Organizational role
Providing information and suggestions to member states: my country has an early history in the Fund. my country was one of the 44 countries participating in the Bretton Woods Conference in 1944, and As a large country, its share is very large, second only to the United States with 27.5 billion U.S. dollars and the United Kingdom with 13 billion U.S. dollars, and with 5.5 billion U.S. dollars, it is listed among the countries with the largest share together with the United States, Britain, France, and India. When the fund was replenished in 1959, due to various reasons, my country's share did not increase, so it could not be included among the five countries with the largest share. In 1961, the qualification to appoint an executive director alone was replaced by West Germany. In the past, my country's qualifications in the International Monetary Fund were represented by the Kuomintang government authorities. Since my country resumed its legal seat in the United Nations, in April 1980, the International Monetary Fund canceled the qualifications of the Taiwan authorities and restored my country's membership status.
Fund Evaluation
The International Monetary Fund adopts a parity system for foreign exchange rates, which stipulates that each member country must set the parity of its own currency. Article 4 of the Fund stipulates: The parity of the currencies of member countries is generally expressed as 1 ounce of gold (British taels) equal to 35 US dollars.