International Monetary and Financial Committee (IMFC)

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Context

Recently, Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman attended the Plenary Meeting of the International Monetary and Financial Committee (IMFC).

International Monetary Fund of IMF is the parent organization of IMFC. So, Read all about IMF here: https://www.iasgyan.in/daily-current-affairs/imf

International Monetary and Financial Committee (IMFC)

The IMFC advises and reports to the IMF Board of Governors on the supervision and management of the international monetary and financial system.
It also considers proposals by the Executive Board to amend the Articles of Agreement and advises on any other matters that may be referred to it by the Board of Governors.
Although the IMFC has no formal decision-making powers, in practice, it has become a key instrument for providing strategic direction to the work and policies of the IMF.
The IMFC usually meets twice a year, at the Bank-Fund Annual and Spring Meetings.
At the end of the meetings, the Committee issues a communiqué summarizing its views. These communiqués provide guidance for the IMF’s work program during the half year leading up to the next Spring or Annual Meetings.

Composition of IMFC

IMFC has 24 members who are central bank governors, ministers, or others of comparable rank and who are usually drawn from the governors of the Fund’s now 190 member countries.
Each member country and each group of member countries that elects an Executive Director appoints a member of the IMFC.
The IMFC operates by consensus, including on the selection of its chair. While there are no formal rules on term limits, since 2007 IMFC chairs have been appointed for a term of three years. (Conventionally).
A number of international institutions, including the World Bank, participate as observers in the IMFC’s meetings.

Read about World Bank: https://www.iasgyan.in/daily-current-affairs/world-bank