International Monetary Fund

Specialized agency of the United Nations, headquarters Washington, DC, established under the 1944 Bretton Woods agreement and operational since 1947. It seeks to promote international monetary cooperation and the growth of world trade, and to smooth payment arrangements among member states. IMF standby loans are available to members in balance-of-payments difficulties (the amount being governed by the member's quota), usually on the basis that the country must agree to take certain corrective measures.

The IMF also operates other drawing facilities, including several designed to provide preferential credit to developing countries with liquidity problems. Having previously operated in US dollars linked to gold, since 1972 the IMF has used the special drawing right (SDR) as its standard unit of account, valued in terms of a weighted ‘basket’ of currencies. Since 1971, IMF rules have been progressively adapted to floating exchange rates.