How the IMF was founded

First and foremost, the IMF is the UN's creation. Though the IMF is an independent organization, we should remember about its origins. The Fund is headquartered in Washington.  Not all the countries are members of the IMF, but the current membership amounts to as many as 187 countries. 

The idea of creating the fund was first voiced at the Bretton Woods conference at the end of the Second World War.  The document was signed by 29 counties then, in 1945. 

The IMF is currently governed by Christine Lagarde, a former French Finance and Economy Minister.  

IMF's functions 

The IMF has a number of well determined activity instructions.  According to an official list of functions, the IMF is in charge of

- providing loans to the countries in need and enlarging the world's trade borders;  

- contributing to international cooperation in monetary policy and stabilizing the rates of national currencies;

- consulting indebted countries;

- working out global financial statistic standards, collecting and publishing financial statistics (which must be extremely important to professional traders), 

Finger on the pulse...or what the IMF is busy with

The International Monetary fund tends to ensure the world's sustainable economic development, and therefore monitors the sphere of finance and state economies. It takes action if a crisis has occurred or is about to occur. The IMF's methods are not varied.  The leading one is short-term and middle-term crediting (in contrast to long-term credits provided by the World Bank). However, the IMF's contribution is not limited to financial aid. The IMF's loans may be accompanied with advice on how to better a country's economic situation, educational support, and qualified assistance. Besides, the countries may apply for help on their own. 

How could a trader benefit?

There's no need to explain to a Forex professional how the world's or particular countries' economic state affects currency rates. Now we know that the IMF closely watches world finances and regularly publishes statistical data collected. This information may be essential to making trading decisions. The IMF's actions regarding this or that country will be important as well. Keep your finger on the pulse, study causes and consequences, and develop analytical skills - there are lots of resources to do that! 

Technical analysis would not be enough for real stable success. Sooner or later, fundamental market analysis will be required, since building a house without foundation would be hard, wouldn’t it?

Happy trading, my friends!

The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.

Follow us in social networks!
Live Chat
Leave feedback