International Monetary Fund

International Monetary Fund (IMF) was concieved in July 1994 in Bretton Woods, New Hampshire and entered into force on March 1, 1947.  IMF was established in order to promote international monetary cooporation, facilitate expansion and balanced growth in international trade and maintain exchange arrangement among its members.  The IMF established a Par Value where countries that joined agreed to keep their exchange ratein terms of U.S. dollar, and the value of dollar in terms of gold. This par value system—also known as the Bretton Woods system—prevailed until 1971, when the U.S. government suspended the convertibility of the dollar (and dollar reserves held by other governments) into gold.