Question

Provide a brief summary of the IMF , which includes its purpose, Special Drawings Rights (SDR) and the Jamaica agreement as well as any other pertinent information

Answer 1

IMF along with the World Bank was founded on the day the Agreements of Bretton Woods were signed. Its first purpose was for supporting the new system of standard rates of exchange. Today it is an organization of 189 member nations that works to secure financial stability, foster global monetary cooperation, facilitate global trade, sustainable economic growth, promoting high employment and reducing the poverty around the globe. IMF main aim is to ensure the international monetary system's stability. It's main functions include overseeing the economies of member nations, providing technical assistance to its member nations and lending to nations with balance of payments issues.

In 1963 Jamaica joined IMF; and made its first loan for amount of 10 million SDR’ to Jamaica. IMF and Jamaica have entered into sixteen arrangements; and Jamaica has applied consistently IMF resources, and taken benefits of the availability of loans provided in order to help enhance the economic stability and improving the the standard of living of the country. The New IMF Agreement for Jamaica's aimed to create employment and support growth. For Jamaica, IMF It approved a new $1.64 billion loan and intended as insurance to support the nation's reform program to create employment, tackle poverty and improving the living standard. In 1969 IMF created Special Drawings Rights (SDR) to supplement official reserves to its member countries. The SDR's value is based on a basket of five currencies- the Euro, the Chinese, the U.S. dollar, the British pound sterling, and the Japanese yen.