The International Monetary Fund (IMF) is an international financial institution that is an autonomous organization working with the United Nations. The IMF was formed on 27 December 1945, its headquarter is located in Washington, D.C. and the total member countries are 189. Unlike development banks, for example World Bank, the IMF does not lend for specific projects.
Economically stable countries contribute funds to a pool from which countries with balance of payments problems can borrow money. The IMF’s fundamental mission is to ensure the stability of the international monetary system. It achieves this goal by:
- keeping track of the global economy and the economies of member countries
- Lending to countries experiencing balance of payments problems, and
- Giving technical assistance and practical help to member countries.