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The International Monetary Fund
(IMF) began operations in 1946, after ratification of the treaty, organised at the Bretton Woods
Conference of the United
Nations Monetary and Financial
Committee (1944).

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The IMF is a United Nations system as a specialized agency.The current members of the IMF are about 180 countries, including all former Soviet republics.
Headquartered in Washington.

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Each member has 250 votes + 1 vote for each part of the quota of 100 thousand SDR (Special Drawing
Rights, SDR) are determined on the basis of the cost of a basket of five major world currencies: U.S. dollar,
German mark, French franc, pound sterling and Japanese yen).

The objectives of the IMF are:
• Promoting international cooperation in monetary policy;
• promote balanced growth of international trade to foster and maintain a high level of employment and real income for the development of the productive capacity of all members as primary objectives of economic policy;

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• maintenance of currency stability, and orderly exchange relations among Member States, as well as preventing the devaluation of currencies for reasons of competition;
• participation in the establishment of a multilateral system of payments, the elimination of restrictions on currency transfers;
• providing the means to eliminate the imbalance in the balance of payments of member countries.


The Executive Board is responsible for the current business of the IMF. Seven of the 24 Executive Directors appointed by the countries with the largest quotas
(Germany, Britain, China, France, Saudi
Arabia, the United States and Japan), and the rest are elected from other countries on the basis of regional representation.


Meetings of the Executive Board held several times a week under the chairmanship of the
Managing Director.
The IMF staff has more than 2,000 experts, headed by the Managing Director.The
Managing Director is selected by the
Executive Board


Although the IMF was created as an institution of cooperation in the field of supervision of the international monetary system, it also ensures the functioning of the system, releasing it from time to time, some money, sometimes quite substantial, in the form of credits to Member States.Thus, the
IMF is probably the most known to the public operations of pumping billions of dollars into the system during the debt crisis of the 80s.

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IMF is substantially controlling organization dedicated to coordinating efforts to expand cooperation in economic policy. Nevertheless, the financial function is an important direction of the IMF.

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The IMF lends to countries only experiencing difficulties with the implementation of payments, there are countries that do not have sufficient foreign exchange earnings to pay for purchases from other countries .

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It is expected that each country borrows the currency of another country from the general reserve, return the funds as soon as they overcome problems making payments .

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Depending on the complexity of the problem of payment and the loan amount requested, the executive director, represent the entire community, decide whether the reforms have had enough and whether the IMF has reasonable grounds to believe that the funds will be returned


The most widely used mechanism for agreements on stand-by credits, enabling countries experiencing difficulties in
Research Institute made financial commitments, to obtain a credit line for up to three years to reorganize their finances. During this period, the country can take part from the IMF up to a maximum value of the loan for the implementation of external payments, provided that it continues to pursue a program of reorganization.

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The IMF justifies this right need to be sure that the borrowing countries will be able to repay their debts, providing a smooth circulation of resources IMF

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IMF Articles of Agreement regulated the mechanism of foreign exchange markets, the regime of foreign exchange transactions.Article VIII contains necessarily proof of member countries not to enter without the consent of the Fund's restrictions on payments and transfers for current account balance of payments is not using Vat discriminatory exchange rate regimes, and not at to run to the multiplicity of exchange rates.

Currency restrictions are allowed only in two cases:

1) by virtue of Article XIV of the
Constitution they can maintain or establish new IMF members during the transition period, the duration is not defined by country

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2) An official declaration of the
Fund's deficit of a particular currency gives the right of any country-Member, after consultation with the Fund to implement temporary restriction of operations in that currency.