International Monetary organisation or IMF was established in 1945. Its headquarters is located in Washington DC. It aims at setting up a system of international payments and taking care of the adjustment in exchange rate among various currencies.

Objectives

a. To promote International Monetary cooperation among the member countries.

b. To promote the growth of employment and income by promoting balanced growth of international trade.

c. To promote exchange stability to maintain orderly exchange arrangement among the member countries.

d. To facilitate International payments among the member countries.

Functions

a. To provide short term credit to member countries.

b. To provide the required machinery to orderly adjust the exchange rate.

c. To become a lending Institution of foreign currency.

d. To determine the value of a country's currency and altering it if required to bring about an orderly adjustment of the exchange rate of member countries.

e. Maintain stability in the exchange rate of the member countries.