The International Monetary Fund, referred to as IMF, was established in Washington on December 27, 1945. It was established at the same time as the World Bank and is one of the two largest financial institutions in the world. So what is the International Monetary Fund? what's the effect?

1. What is the International Monetary Fund?

The International Monetary Fund's responsibilities are to inspect currency exchange rates and trade conditions of various countries, provide technical and financial assistance, and ensure the normal operation of the global financial system.

The purpose of the organization is to promote international monetary cooperation through a permanent institution and provide methods for consultation and collaboration on international monetary issues; through the expansion and balanced development of international trade, it promotes and maintains employment and employment in member countries. The development of productive resources and the high level of real income are the primary goals of economic policy; stabilizing international exchange rates, maintaining orderly exchange arrangements among member countries, and avoiding competitive exchange depreciation; assisting member states in establishing multilateral payments for regular transactions system to eliminate foreign exchange controls that impede world trade; and, subject to appropriate guarantees, the IMF provides temporary general funds to member countries so that they can have the confidence to use the opportunity to correct imbalances in the balance of payments without taking steps that would jeopardize national or international prosperity. Measures; in accordance with the above purposes, shorten the period of imbalance in the international balance of payments of member countries, reduce the degree of imbalance, etc.

In fact, it was essentially created by the United States to maintain the dominance of the US dollar in the world currency.

2. What is the difference between the International Monetary Fund and the World Bank?

1. Different purposes

The International Monetary Fund was established to adjust international monetary management, while the World Bank was created to coordinate long-term loans and investments in developing countries. international financial organizations.

2. Useless role

The International Monetary Fund has played a positive role in preventing international financial and economic crises, while the World Bank has promoted the economic development of developing countries to a certain extent.