The International Monetary Fund ( Imf ) - 6431 Words

Introduction In the statement of the 2015 Article IV Consultation Mission to China, the International Monetary Fund (IMF) concluded that the Chinese economy was transitioning to a safer and higher-quality growth. In particular, the IMF highlighted that China had made good progress in recent years in reducing its large current account surpluses and its huge accumulation of foreign exchange reserves. Although undervaluation of the yuan was a major factor causing the large imbalances in the past, the appreciation of the yuan over the past few years had brought the yuan-USD exchange rate to a level that was no longer undervalued. Exchange rate, the price of a nation’s currency in terms of another currency, indicates the value of a currency: a higher exchange rate is associated with a relatively lower value of its corresponding currency. Since Chinese goods are usually valued in yuan, the only currency that is valuable for Chinese is yuan. That is, a Chinese is only interested in selling and purchasing goods in yuan. Foreign consumers, such as Americans, have to use yuan rather than dollars to purchase goods from Chinese sellers. Specifically, an American must exchange his dollars into yuan at first and then uses yuan to purchase Chinese goods. In other words, the yuan-USD exchange rate works as a tool to measure the price of the dollar in yuan. Facing the threat of trade sanctions by the U.S. Congress, China announced that it would replace its decade-old currency peg with aShow MoreRelatedInternational Monetary Fund ( Imf )2266 Words   |  10 PagesAims/Purpose International Monetary Fund (IMF) aims to maintain and defeat and sometimes to restrain the financial crises. (BBC, 2012) Basically it was created to avoid another Great Depression with an economical cooperation. It was founded more than 60 years ago at the end of the II World War. (International Monetary Fund, 2015) Mostly the institution has directed to focus the developing world. Nowadays there are few purposes of the IMF such as monetary stability, exchange rate stability, facilitateRead MoreThe International Monetary Fund ( Imf )985 Words   |  4 PagesThe International Monetary Fund (IMF) was one of the many international organizations that emerged after the end of World War II. The primary function of the IMF is to promote the international financial stability and spur monetary cooperation. Many countries see the IMF as a â€Å"lender of last resort† (Thacker, 1999:38), meaning countries borrow money from the Fund for â€Å"short-term balance of payment supportâ⠂¬  (Steinwand and Stone, 2007:11) in order to avert the collapse of their domestic economies.Read MoreThe International Monetary Fund ( Imf )1089 Words   |  5 PagesThe International Monetary Fund (IMF) was established in 1946, along with the World Bank. The IMF was developed to promote all monetary cooperation and remedy economic problems incurred during the post - war reconstruction period (Baylis; 2008: 245). The IMF was therefore considered as the â€Å"rule keeper† and an important component in public international management. In the pursuit to stabilise the exchange rate system, the IMF reserves the authority to change exchange rates. Another vital role isRead MoreInternational Monetary Fund ( Imf )3071 Words   |  13 PagesGLOBAL BUSINESS SUSTAINABILITY INTRODUCTION International Monetary Fund (IMF) is an organization consisting of 188 nations functioning towards global monetary cooperation, ensuring financial stability, minimizing poverty around the world (IMF, 2014). In this report its functions of IMF and its effectiveness have been explained to describe minimizing financial imbalances by the countries. UK has been the main focus in this study. The impact of IMF policies on social and environment in UK and howRead MoreThe International Monetary Fund ( Imf ) Essay2250 Words   |  9 PagesIntroduction: The International Monetary Fund (IMF) is an international organization created in 1945 to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and to reduce poverty around the world. The IMF is governed and accountable to the 189 countries that make up the global membership of the organization. These goals make up the IMFs formal rules, the informal rules allow more access for powerfulRead MoreThe International Monetary Fund ( Imf )1310 Words   |  6 Pagesat how incompetent and politically driven economic policy making drove Europe into prolonged recession and high unemployment. The financial crises and fear of a meltdown slowed world economic growth considerably. In October 2010, the International Monetary Fund (IMF) projected 4.6 percent growth for the global economy in 2013; it ended up being just 3 percent. This difference may not seem like much, but in terms of lost output it is more than $800 billion, and it is not only in the rich countriesRead MoreThe Imf ( International Monetary Fund )941 Words   |  4 PagesThe IMF (International Monetary Fund), also known as the Fund, was conceived at a UN conference in Bretton Woods, New Hampshire, United States, in July 1944. The 44 countries at that conference sought to build a framework for economic cooperation to avoid a repetition of the competitive devaluations that had contributed to the Great Depression of the 1930s (https://www.imf.org/external/about.htm). Currently, the organization is headquartered in Washington, D. C. Originally, the IMF was designedRead MoreThe International Monetary Fund ( Imf )1501 Words   |  7 PagesTHE INTERNATIONAL MONETARY FUND (IMF) The IMF was set up during the Second World War in the year 1944. It started operation in 1947 and it has been working with the UNO since. Its headquarters is in Washington D.C in America. IMF provides short term loans to countries having problems of balance of payments. It also provides technical advice to its members and ensures free flow of trade by removing all trade restrictions. It establishes and maintains stable exchange rate between member countriesRead More The International Monetary Fund (IMF) Essay1888 Words   |  8 PagesThe International Monetary Fund (IMF) International Monetary Fund (IMF), international economic organization whose purpose is to promote international monetary cooperation to facilitate the expansion of international trade. The IMF operates as a United Nations specialized agency and is a permanent forum for consideration of issues of international payments, in which member nations are encouraged to maintain an orderly pattern of exchange rates and to avoid restrictive exchange practices.Read MoreEssay on The International Monetary Fund (IMF)2392 Words   |  10 Pages The International Monetary Fund, is an international organization established in 1945 as part of the United Nation system. Its creation was conceived at Bretton woods, to â€Å"†¦regulate the rates at which currencies were exchanged among member countries; and it would help ensure international stability by making loans at times of crisis in member countries’ balance of payments.† Since its creation, the IMF have gain enormous power in the international community, specially influencing the