IMF Members: UPSC Daily Important Topic | 26 June 2022

IMF Members

Any other state, whether or not a member of the UN, may become a member of the IMF in accordance with IMF Articles of Agreement and terms prescribed by the Board of Governors.

✓Membership in the IMF is a prerequisite to membership in the IBRD.

✓Pay a quota subscription: On joining the IMF, each member country contributes a certain sum of money, called a quota subscription, which is based on the country’s wealth and economic performance (Quota Formula).

✓It is a weighted average of GDP (weight of 50 percent)

✓Openness (30 percent),

✓Economic variability (15 percent),

✓International reserves (5 percent).

✓GDP of member country is measured through a blend of GDP—based on market exchange rates (weight of 60 percent) and on PPP exchange rates (40 percent).

✓Special Drawing Rights (SDRs) is the IMF’s unit of account and not a currency.