GMS 724 Lecture Notes - Lecture 10: Special Drawing Rights, Bretton Woods System, Japanese Yen

• School: Ryerson University
• Department: Global Management Studies
• Course: GMS 724
• Professor: Howard Lin

Document Summary

The goals of the international monetary fund (imf) are to. Ensure stability in the international monetary system. Promote international monetary cooperation and exchange-rate stability. Facilitate the balanced growth of international trade. Provide resources to help members in balance-of-payments difficulties or to assist with poverty reduction. The imf relies on a quota system to generate funds to lend to countries in need. Quotas, which are based on the relative size of a country within the global economy, are important because they influence the voting power of each country. The larger the quota, the higher the voting power. The quota system was reformed in 2010 giving more quota shares to emerging markets. So, while the united states retained its top position, china now holds the number 3 spot, and the bric countries are among the largest shareholders in the fund. Special drawing rights are an international reserve asset given to each country to help increase its reserves.