What are the original functions of

IMF?
• Oversee a system of “fixed” exchange
rates
• Promote currency convertibility
• Act as “lender of last resort” supplying
emergency loans to countries which ran
into short-term cash flow problems.
What bigger international institution
is the IMF a part of?
• It is a part of the United Nations and
has 185 member countries
Besides loaning money, how does
IMF helping countries?

• Technical Assistance
• IMF Surveillance (gathering information)
• The IMF established the GDDS (the
General Data Dissemination System) and
SDDS (the Special Data Dissemination
Standard)
 The Mission of the IMF

1.ensure the stability of the international monetary

2.prevent crises

3.provide advice

4.make financing

5.provide technical assistance and training

3 parts or functions of the IMF's job
1.monitoring national, global, and regional
economic and financial developments and
advising member countries on their economic
policies ("surveillance")

2.lending members hard currencies to support

policy programs designed to correct balance of
payments problems.

3.Offering technical assistance in its areas of

expertise, as well as training for government
and central bank officials
 Functions of the IMF
1.Promote the negotiation and cooperation
2.promote exchange rate stability and orderly exchange
rate arrangements

3.Establish a long position payment and transfer system

4.provide financing to member countries

5.Reduce the imbalance of international payments for
the duration and extent of

6. the IMF has a financial function to fulfill, which consists

of providing resources to members on a temporary basis
Examples of IMF Projects
 Manage public capital: 1991, The
Cambodia rebuilt their public service
and enhances their public capital
management. IMF provides the tactical
assistance and capital supply,
combined with their political advice to
help The Cambodia meet the
challenges.
 Promotion of banking supervision.
September 2001, when IMF set new office in Port
Moresby of Papua New Guinea, the local economy
was suffering from a tough time. Part of problem
was caused by governance. IMF helped the
government to perfect the financial system and
strengthen the banking auditing. They also
provided the Central Bank of Papua New Guinea
with numerous technical support. At the beginning
of reform, IMF drafted The New 2000 Central Bank
Act and The New 2000 Banking Financing
Institution Act for Papua New Guinea, in order to
enhance their Auditing in Banking and Financing.
 Future scheme: In the 1990s,Mongolia began
to switch their economy to a market economy.
During that time, the government of Mongolia faced
the weakness of bank system, and they must be
well prepared for the impact. With the help of the
IMF in technical and finance, Mongolia developed
rapidly. They had to deal with many large
challenges, and the IMF officers put forward many
reasonable recommendations such as promoting
the transparency of public section and implementing
the revolution of civil servant system.