Table of ContentsIntroductionAll About the Role of the IMF as a Global Lender of Last ResortThe IMF and NigeriaConclusionExamining the Effectiveness The International Monetary Fund (IMF) Acting as a Lender of Last Resort last resort, with 2 country examples to show how effective the loan was (OR NOT). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”?Get the original essayIntroductionAfter its 55 years of existence, perspectives unequivocally conflict on the importance and role of the International Monetary Fund (IMF ) in today's international economy, and how effective it has been during these years of existence. From one perspective, some people consider that the Fund has adapted well to a changing environment, with perhaps the need for some changes in the international architecture. There are also those who accept that his valuable time was spent on the adaptability of conversion standards and the opening of capital markets. These deeply contradictory perspectives require an adjusted view and action by the IMF regarding its recorded progress. exploit the opportunities and face the challenges posed by globalization and overall monetary improvement. The IMF tracks the patterns and execution of the global economy, alerts its various countries when it sees trouble coming soon, convenes a meeting for a strategic discussion, and advises governments on how best to handle financial challenges. The IMF provides policy advice and financing to individuals facing monetary challenges and responds to the expectations of developing countries to help them achieve macroeconomic strength and reduce poverty. Spurred by gigantic developments of capital and unexpected moves into an almost favorable position, globalization has influenced nations. arrangement decisions in many territories, including work, exchange, and duty arrangements. Helping a country benefit from globalization while avoiding potential downsides is an imperative mission of the IMF. IMF organizers acknowledged that even as administrations seek a sound financial strategy, traditional exchanges can lead to temporary shortages in equalizing payments. Accordingly, one of the elements of the IMF is to give its individuals the ability to correct imbalances in their disbursement parities without resorting to measures detrimental to national or global success. The vast majority consider the IMF as an institution that grants crisis credits to countries that have found themselves facing challenges, either due to poor monetary strategies or due to external circumstances, for example, a sudden drop in price things or a financial emergency in a neighboring country. This perspective, while not incorrect, simply gives an incomplete picture of the truth of the Fund's operations, or what it should be doing. Its order, as set forth in the first article of the 1944 Breton Woods Agreement, is exceptionally broad; advance global financial participation, encourage the development of global trade, advance the strength of the scale of trade, and help conclude a multilateral remittance arrangement. Keeping in mind the end goal of achieving these goals, the Fund should provide temporary compensation of disbursements to countries in need of additional international funds. It is currently a virtually all-inclusive establishment when it comes to money, moving from the 44 states discussed during theBreton Woods meeting in 1944 to 182 countries today. The IMF's Role as a Global Lender of Last Resort The basic idea of ​​this phenomenon, the lender of last resort, comes from a focal rule of saving money dating back to Bagehot over a century before. According to the norm, in the event of a fiscal frenzy, the central bank, or in this case the IMF, must be prepared to give without restraint, regardless of when there is great security. This law suggests that in a financial emergency there is a different balance situation and that the great result can be achieved and real unnecessary monetary harm avoided by giving brief liquidity to substances that are broadly soluble. The use of this concept in emergency situations linked to sovereign money requires considering that the same standards apply when loans are cross-border and generally without indubitable guarantee. This distinction from internal loans underlines the importance of judging that the sovereign in question is politically willing and able, with sufficient time, to guarantee the assets that guarantee its dissolution, exclusively in respect of a trust and a full credit. The IMF, as the global bank of last resort, could be a suitable arrangement if it provides fundamental liquidity through a global "liquidity diffusion store", which serves as a gathering point for flooding liquidity (in especially money saved in national bank cash type/legal commitments of delicate and transitional obligations, for example treasury bills or Compass accounts), all under the supervision of the IMF. In order to gather “floodable” liquidity, the IMF could release debentures as “liquidity securities” from this reserve. Market members should be required to hold the least reserves of these liquidity securities, which also reflects an extremely reasonable storage proportion for domestic legitimate delicate products. This would adequately avoid cash hoarding and make the IMF a global bank of last resort, leaving the current enormous risk of influence in the hands of members of the business sector. Talk of the IMF as lender of last resort demonstrates the importance and viability of the country's lending specialist. last resort from several points of view. One of the uses of is to avoid and mitigate unlimited emergency situations (deliberate danger). It seems important to emphasize and clarify on more points of interest the importance of the effective danger and how the IMF will succeed in maintaining the monetary emergency. If there is a failure or disappointment in a bank, then this can prompt a reduction in openness. confidence in other banks as well. Overall, these negative externalities imply that even the most creditworthy organizations could fall if they were unable to quickly exchange their benefits without reducing their costs. Thus, the IMF, as lender of last resort, can help maintain this breakdown by purchasing bank resources or providing liquidity to the failing bank with the specific end goal of meeting investor demands without unduly discouraging the quality of the bank. capital. Despite the competence of the IMF as an LLR to manage the financial emergency, some philosophers like Pagratis argue that the lender of last resort is, to some extent, not convincing because it raises the question of ethical risk. Nevertheless, it can be argued that the issue of ethical risk can be explained from different angles, for example by imposing high penalty rates and sufficiently valuing the guarantee at its true esteem outside of emergency situations. Furthermore,.