1. Background of the study
The international financial institutions make up institutional arrangements for international business. During the end of the World War II, many countries started mulling the plight of the future world. There were valid concerns about reconstruction of devasted areas, and re-building and developing the war-hit economies. Remarkable decisions were made in Bretton Woods conference in 1944 to boost international trade and economic growth, and to achieve monetary stability in the global economy.
Along with IMF (International Monetary Fund), IBRD (World Bank) and ITO (International Trade Organization) were the outcomes of the historical Bretton Woods Conference. However, in this report we focus on IMF as a financial institution and its activities and contribution in Nepalese economy.
1.2 Objectives of the study
• To know about the IMF’s role in Strengthening the International Financial System
• To know the role of IMF in resolving economic crisis. • To find out the impact of IMF in monetary policy.
• To know the IMF’s role to meet the changing needs of its member countries in an evolving world economy. • To find out the impact of IMF in Nepalese economy. • To know about the IMF lending in Nepal.
1.3 Importance of the study
The following are the points, which throw light on the importance of this fieldwork:
• It serves as the partial fulfillment of requirement of B.B.A. program. • It has helped us to boost up our confidence.
• It has helped us to gain an experience of working in group. • It might be useful for the other researchers, who can take it to be their guideline. • It might be useful for the library, so that any student wanting to prepare a report on such field can have some ideas and basic guidelines.
1.4 Limitations of the study
This study has the following limitations:
• We had to collect the information in very short period of time so all the required information couldn’t be collected adequately. • All expenses related to this project are managed by students themselves. • We could not find information as the source of relevant information and data was only internet and book. • The help and cooperation provided by the personal administration of the department was not sufficient. • The researcher couldn’t go beyond the responses provided.
An introduction to IMF
The IMF is the world's central organization for international monetary cooperation. It is an organization in which almost all countries in the world work together to promote the common good. The IMF's primary purpose is to ensure the stability of the international monetary system—the system of exchange rates and international payments that enables countries (and their citizens) to buy goods and services from each other. This is essential for sustainable economic growth and rising living standards. The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment.
Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy.
2.1 The origins of IMF
The IMF was conceived in July 1944, when representatives of 45 governments meeting in the town of Bretton Woods, New Hampshire, in the northeastern United States, agreed on a framework for international economic cooperation. They believed that such a framework was necessary to avoid a repetition of...