Browse

You are looking at 1 - 10 of 18 items for :

Clear All
International Monetary Fund. Monetary and Capital Markets Department

Abstract

This 2001 Annual Report on Exchange Arrangements and Exchange Restrictions provides a detailed description of the exchange arrangements and exchange restrictions of individual member countries, as well as Aruba, the Netherlands Antilles, and Hong Kong Special Administrative Region. The report highlights that in the case of Algeria, the external value of the dinar is set at the interbank foreign exchange market rate. No margin limits are imposed on the buying and selling exchange rates in the interbank foreign exchange market.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

The IMF is an independent international organization. It is a cooperative of 185 member countries, whose objective is to promote world economic stability and growth.1 The member countries are the shareholders of the cooperative, providing the capital of the IMF through quota subscriptions (Box 1.1 and the Appendix). In return, the IMF provides its members with macroeconomic policy advice, financing in times of balance of payments need, and technical assistance and training to improve national economic management.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

The present chapter provides a brief overview of the internal organization of the IMF. In addition, the chapter discusses the structure of the IMF’s income, making particular reference to the ongoing efforts to remedy the operational deficit and restructure the income sources and position of the IMF.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

The Articles of Agreement set out the obligations of member countries and the IMF, which form the legal basis of IMF surveillance over members’ economic policies.10 The core article in this respect is Article IV of the IMF’s Articles of Agreement. The principles and procedures of surveillance were set out in further detail in a 1977 Executive Board Decision, which established how surveillance would be conducted after the adoption of the Second Amendment to the Articles.*

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

According to Article I of the IMF’s Articles of Agreement, the purposes of the IMF include making the resources of the IMF temporarily available to member countries under adequate safeguards to provide an opportunity to the countries to correct balance of payments imbalances and to shorten the duration and lessen the degree of these imbalances.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

The SDR was created as a result of the First Amendment of the Articles of Agreement, which became effective in 1969. It was created as a supplement to existing reserve assets as the demand for reserves was expected to grow substantially over time in line with growing world trade.80 Specifically, there were concerns that the growth in the supply of reserves (which comprised mainly gold and the U.S. dollar) would be insufficient since it depended on a diminishing supply of newly-mined gold entering into official reserves and on continued and unsustainable deficits in the balance of payments of the United States. It was also thought that U.S. gold stocks would decline relative to U.S. dollar liabilities, which would eventually make the par value of the U.S. dollar relative to gold unsustainable and precipitate an international monetary crisis. The intention was therefore to establish the SDR system to expand world reserves independently of the growth of official holdings of gold and foreign exchange. Further changes to the SDR system came about as a result of the Second Amendment of the Articles of Agreement, which had as an objective to make the SDR the principal reserve asset in the international monetary system. The SDR is also the unit of account that is used by the IMF.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

A central objective of the IMF in low-income countries is to support sustained poverty reduction through policies that promote economic growth, employment generation, and targeted assistance to the poor. This follows from the IMF’s mandate to contribute “to the promotion and maintenance of high levels of employment and real income and to the development of the productive resources of all members as primary objectives of economic policy.” In doing so, the IMF works in four main broad areas—policy advice and program design, capacity building, financial support and debt relief, and coordinated international efforts. The IMF focuses on its core areas of responsibility and expertise, where it has a clear comparative advantage, namely: the pursuit of stable macroeconomic conditions and macro-relevant structural reforms, with supporting financial and technical assistance. In its work in low-income countries, the IMF works in close collaboration with other development partners, particularly the World Bank, which is the lead institution for poverty reduction.90

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

Capacity building is provided by the IMF to member countries mostly in the form of advice and training provided by IMF staff, headquarters-based technical assistance experts, and experts in the field employed by the IMF. Requests for technical assistance arise from the authorities’ initiatives to identify and correct weaknesses in policy formulation or implementation. They may also result from discussions in the context of IMF surveillance or lending operations or as follow-up on FSAP and ROSC exercises.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

The discussion of the reform of the international financial system rose to prominence in the late 1990s in the aftermath of the economic and financial crises in the Asian countries. The package of reforms grouped under the rubric of “international financial architecture” is designed to respond to the lessons of the crises with the aim of reducing the frequency and magnitude of future crises. They complement the increased attention being given to external vulnerability analyses and to the conditions governing access to IMF resources.

Parmeshwar Ramlogan and Mr. Bernhard Fritz-Krockow

Abstract

The original Bretton Woods conference called for the creation of three international organizations. While the IMF and the World Bank were created shortly after the conference, an international organization devoted to the facilitation of international trade was only created in 1996, when the World Trade Organization (WTO) was established incorporating the General Agreement on Tariffs and Trade (GATT). While the IMF cooperates with a large number of international organizations, including all the regional development banks, the common origin and complementary mandates of the IMF, World Bank, and WTO led to intense and well-defined forms of cooperation.