What is the International Monetary Fund (IMF)?

Organization 189 of countries whose central banks subscribe to and are managed by the same trade rules. Countries within the IMF are prohibited to back their currency with gold starting from 1978. They established a Special Drawing Right (SDR) for exchanges, abolished the official pricing of gold, and ended gold’s obligatory use in transactions between countries within the IMF. Gold still may be paid to the IMF from countries as a loan payment, but the IMF is prohibited to make any other gold transactions beyond selling off their holdings to fund programs. The IMF currently has 90.5 million ounces of gold in designated depositories.

What people ask…

What does the IMF do?
How much money does the IMF have?
What is the role of the IMF in globalization?
How is the IMF governed?

See Also…

Nixon Shock, Gold Standard, Bretton Woods System

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