The International Monetary Fund refers to the pool of money that is made available to nations around the world as a form of loan, meant to go towards investments and growth. The fund is governed by an organization that oversees the global financial market, through application of the rules and policies that govern the market system.
The organization was set up with the aim of regulating the exchange rates that were being used among nations who were engaged in exchange of funds for development. The headquarters of the organization are in Washington D.C. The international fund has a long history having been started in July 1944 with a membership of only 45 members. As at the year 2009, the organization hosts about 186 countries.
The organization has faced challenges in terns of finances. However, as it has continued to grow, plans have been implemented on how to make member states agree to the repayment plans that have been put in place. In addition to restructuring its policies, IMF was also forced to sell part of its gold reserves. This helped them realize the stipulated budget of 2008, which was $400million. However, in as much that the budget was realized, other measures had to be taken to minimize costs and this included dismissing some 380 staff members. A tough decision to make indeed!
Any country which wishes to become a member of the International Monetary Fund must meet some qualifications. It must first make an application through writing, which when approved by the Executive Board will be submitted to the Board of Governors with recommendation thereof. The application undergoes further scrutiny and the applicant needs to take the legal steps required under its own law to enable it to sign the contract document of agreement to abide by the stipulated rules and regulations.
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