The International Monetary Fund ( Imf )

1501 WordsApr 21, 20167 Pages
THE 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 countries. Each member of the IMF Funds and could only withdraws 25% of its contribution. However, the IMF has special Drawing Rights for member countries since 1970 and subsequently some members have even draw more then what they have contributed. Nigeria is a member of the IMF many African countries such as Sierra Leon, Ghana and Nigeria have met some of the conditionality including cutting down of government subsidies particularly on education, health and petroleum. The conditionality impose on borrowing nations by the IMF usually bring unfold hardships such as unemployment, low standard of living and depressed economy etc. Nigeria is currently experiencing all these problems. The International Banka Reconstruction and development (IBRD), IBRD was established in 1944 with it’s headquarters in Washington D.C. U.S.A IBRD aim of reconstructing the economy of member nations ,assisting the development of countries by giving them long term loan and providing technical assistance to member
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