Multinational organization created at the Bretton Woods Conference with the goal of stabilizing the value of currencies and maintaining stable international exchange markets. The initial quotas of IMF member countries are paid in a combination of gold and each country’s currency, and in exchange, a new unit of account called Special Drawing Rights (SDR) is withdrawn. With the current flexible exchange rate system, the IMF has lost some of its importance but remains an international forum for discussion and aid to countries with temporary balance of payments difficulties.
« Back to Glossary IndexIMF (International Monetary Fund)
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