The International Monetary Fund (IMF) is an international financial institution and a specialized agency of the United Nations, headquartered in Washington, D.C.. It was established in 1944 at the Bretton Woods Conference by 44 countries, formally coming into existence on December 27, 1945, with the ratification of its Articles of Agreement. The IMF was created to solve the problem of international monetary instability and the competitive currency devaluations that had contributed to the Great Depression of the 1930s.
The IMF's purposes, outlined in Article I of its charter, include promoting international monetary cooperation, facilitating trade, and securing financial stability. Its core mechanism is the quota system, where each member country's contribution (quota) determines its financial obligation, borrowing capacity, and voting power. The IMF provides financial assistance, acting as a lender of last resort to members facing balance of payments difficulties, often subject to conditionality—policy reforms the borrowing country must undertake. It also conducts surveillance, monitoring the economic and financial policies of its members, a process often referred to as an Article IV Consultation.
The IMF is a central pillar of the post-war Bretton Woods system, established alongside the World Bank. A related concept is the Special Drawing Right (SDR), an international reserve asset created in 1969 to supplement members' official reserves. While the IMF's role shifted after the collapse of the fixed exchange rate system in 1971, its core functions of lending and surveillance remain. Most recently, members unanimously adopted the IMF Quota and governance reforms in April 2026, marking the first such reforms in over 15 years to strengthen the institution's effectiveness.