Specify the aims and functions of IMPTo what extent it helped India

Specify the aims and functions of IMP? To what extent it helped

India?

Highlight the performance of IMF in maintaining international liquidity and in promoting multilateralism.

International Monetary Fund (IMF):

Establishment: IMF was established on 27th Dec. 1945. The funds were subscribed to by the member countries. The fund has 146 member countries including Russia accounting for 80 per cent of total world production and 90 per cent of total world trade.

Objectives:

1. To promote international co-operation.
2. To facilitate expansion and balanced growth of international trade and to contribute in employment and incomes.
3. To promote exchanged stability and to avoid co-operative devaluation.
4. To help and reestablish a multilateral system of trade and payments and to eliminate foreign exchange restrictions.
5. To provide means for international adjustments, superior to deflation by making available increased international reserves.

Functions:
1) Regulatory Functions: 

IMF administers code of good behavior in international payments. It regulates exchange rate practices and international payments.

2) Financial functions: 

IMF offers medium-term loans to national monetary authorities to enable them to make up their balance of payment deficit

3) Consultative functions: 

IMP provides a foreign for international cooperation. It is a source of counsel and technical assistance to its members