Posted on

Functions/Objectives of International Monetary Fund (IMF)

Promotion of Exchange Rate Arrangement among Members

It enables different countries to come together to solve the problems of difference in currencies, and to avoid competitive exchange of depreciation of currencies.

Acts as a Consultant by Giving Expert Advice to Members

It advises member countries on technical and economic matters on how to overcome their problems. Provision of Financial Aid to Members Having Balance of Payment Deficits. The fund helps member countries by making loans available to enable them to correct their short term deficits. This is to prevent them from devaluing their currencies.

Promotion of Free Trade and Regulation of Trade Policies

To achieve this objective, it is ensured that every artificial barrier to international trade which may disturb convertibility of currencies are removed to help facilitate payments for 1m ports.

Ensuring Members Confidence

The fund guarantees and ensures members’ confidence by making the funds’ resources available under adequate control, at the time of needs either for development or correction of balance of payment problems.