The International Monetary Fund (IMF) came into existence after the first and second world wars, which disorganised the major trading nations of the United Kingdom, United States of America, Germany, Australia and France. As a result of this economic depression, and against this historical experience, however, representatives of Allied nations, which were the Western European countries, United States, Canada and Japan called for a conference at Bretton Woods U.S.A in 1944, with 44 member nations in attendance. During this conference, the following agreements, were reached; that fund should be raised which would be used for the re-building of the trading areas that were destroyed during the war. To protect and fight against balance of payment deficit by using trade barriers to protect domestic industries. To reduce their exchange rates to give themselves a competitive edge in export market. In addition, currencies were to be devaluated so that each country may find out how to improve its own balance of payments position.
After this conference in 1944, following the agreement reached, the International Monetary Fund (IMF) was formally established on 17th December, 1945. Today, the membership has since increased to about 138 Nations.