IndexIntroductionAll about the role of the International Monetary FundThe role of the International Monetary Fund as a lender of last resortIMF and NigeriaConclusionExamine the effectiveness The International Monetary Fund (IMF) acts as a lender of last resort , with 2 examples of countries to consider showing how effective (OR NOT) the loan was. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay IntroductionAfter its 55 years of presence there are unmistakably conflicting perspectives on the importance and role of the International Monetary Fund (IMF) in today's international economy, and how effective it has been in these years of existence. From one perspective there are people who believe that the Fund has adapted well to the changing environment, with perhaps the need to make some changes to the international architecture. On the other hand there are the people who accept that his precious time is spent in the nature of adaptability to conversion standards and open capital markets. These profoundly contrasting perspectives dictate the need for the correct attitude and implementation of the International Monetary Fund in relation to its recorded progress. All about the International Monetary Fund With its close global membership of 188 countries, the International Monetary Fund is uniquely poised to support separate governments. exploit the opportunities and face the difficulties posed by globalization and monetary improvement in general. The IMF tracks financial patterns and execution worldwide, alerts member countries when it sees impending problems, participates in strategic dialogue, and encourages governments to find the best way to manage monetary challenges. The IMF offers strategic exhortations and financing to people facing monetary challenges, plus it lives up to expectations with the creation of countries to help them achieve macroeconomic soundness and reduce misery. Spurred by gigantic capital developments and unexpected movements into near-favorable positions, globalization has influenced nations' decisions regarding agreements in numerous territories, including labor, trade, and tariff agreements. Helping a country benefit from globalization while avoiding potential drawbacks is an imperative task for the International Monetary Fund. The organizers of the International Monetary Fund have recognized that, despite the fact that governments pursue a sound financial strategy, typical exchange rates can lead to temporary shortfalls in the equalization of payments. Accordingly, one of the elements of the IMF is to give its individuals the ability to correct maladjustments in their parity of installments without resorting to measures detrimental to national or global success. The vast majority think of the IMF as an institution that grants crisis credits to nations that have found themselves in difficulty, due to inadequate monetary strategies or external circumstances, for example a sudden drop in the cost of things or a related emergency to money in a neighboring country. This perspective, while not incorrect, gives only an incomplete picture of the truth of the Fund's operations or what it is supposed to do. Its order, as set out in the first article of the agreement in 1944 at Breton Woods, is exceptionally broad; promote global financial participation, encourage the development of global trade, promote the strength of the trading scale, and help realize a multilateral installment agreement. Keeping in mind the ultimate goal of achieving these goals, the Fund should provide temporary installment compensationto support nations in need of additional international funds. It is now a virtually all-encompassing financial institution, having grown from the 44 states at the 1944 Breton Woods meeting to the 182 nations of today. The Role of the International Monetary Fund as a Global Lender of Last Resort The basic idea of ​​this phenomenon, the lender of last resort, is a focal money-saving rule dating back to Bagehot for over a century. The standard holds that in a budget frenzy, the central bank or, in this case, the IMF, should be ready to give without inhibition whenever safety is high. This law suggests that in the financial emergency there is a different equilibrium situation and that the great result can be ensured and avoid unnecessary real monetary damage by giving short-term liquidity to those substances that are in a broad sense soluble. Using this concept for sovereign money emergencies requires the appreciation that the same standards apply when lending occurs across borders and generally without unambiguous security. This distinction from internal loans underlines the importance of correctly assessing that the sovereign being referred to is politically willing and capable, given sufficient time, to guarantee the assets that guarantee its dissolubility, constructed exclusively in compliance with full trust and credit . The IMF as an international bank of last resort could be an adequate solution if it provides core liquidity through a worldwide "liquidity diffusion warehouse", which serves as a collection point to flood liquidity (especially cash savings in bank type liquidity national/sensitive and transitory legal commitments, for example treasury bills or Compass accounts), all under the supervision of the IMF. In order to collect the "flooded" liquidity, the IMF could extinguish the bonds as "liquidity securities" of that reserve. Market members should be required to hold the smallest number of reserves of such liquidity securities that at the same time reflect an extremely reasonable reserve ratio for legitimate national risk. This would adequately avoid liquidity build-up and introduce the IMF as the world bank of last resort, leaving the current enormous risk of influence to members of the business sector. The discussion of the IMF as a lender of last resort demonstrates the importance and feasibility of the loan specialist of last resort from multiple perspectives. One of the utilities of is to avoid and alleviate the boundlessness of the ordered emergency (deliberate danger). It seems important to underline and clarify in several points of interest the importance of the efficient danger and how the IMF will manage to maintain the monetary emergency. If a failure or disappointment occurs in a bank, this could lead to a reduction in the opening. trust in other banks too. Overall, these negative externalities mean that even the most soluble organizations could collapse unless they find themselves able to quickly trade off their benefits without decreasing costs. Therefore, the IMF, as a lender of last resort, can help maintain this collapse by purchasing bank assets or giving money to the failing bank with the specific end goal of meeting investor demands without excessively discouraging the quality of capital. However, some philosophers such as Pagratis argue that last resort lending is to some extent unconvincing because it increases the issue of ethical risk. However, it can be argued that the issue of ethical risk can be explained from different perspectives, for example by imposing high punishment rates and ensuring a guarantee.