Achievements of IMF
1. The primary goal of the IMF was to promote stability in exchange rates. The measure of exchange stability that the world has witnessed in the IMF era is remarkably superior to what was seen during the inter-war period or gold standard regime. Under IMF arrangements, stable exchange rates do not imply rigid exchange rates. IMF's object is to combine the merits of stability with flexibility in exchange management. It is aimed at avoiding competitive exchange depreciations by requiring members to declare the par values of their currencies fixed in terms of gold or the U.S. dollar. However, it permitted an orderly adjustment of exchange rates when this was needed for correcting fundamental disequilibrium in a country's balance of payments. The recent devaluation of the Indian rupee (in 1966) and that of pound-sterling were justified by the IMF. 2. The IMF also served as an expert institution for consultation and guidance in international monetary matters. It serves as an excellent forum for discussions, practically on a day-to-day basis, of the economic, fiscal and financial policies of member nations, with particular reference to their balance of payments impact. The Fund has created a feeling among the member nations that, their economic problems are not their exclusive concern but of the whole international society. 3. The Fund has contributed in certain ways to the expansion of world trade. By providing credit facilities to member countries, the IMF has reduced the need for their imposing import quotas and resorting to exchange controls. It assists the deficit countries in meeting their temporary disequilibrium in the balance of payments. It also "works for facilitating multi-lateral payments and trade, promoting thereby, international trade as a whole. 4. In recent years the Fund has achieved some success in bringing about a simplification of the multiple exchange system at least in countries that have sought financial assistance from the...
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