The Budgetary Effects of the United States Participation in the International Monetary Fund
Abstract
Since 1945, when the International Monetary Fund (IMF)was established to promote global economic cooperation and stability, the United States has been its largest contributor. Today, the United States financial commitment to the IMF totals approximately $164 billion; that is the maximum amount that the IMF can draw from the United States to make loans to other IMF members. The budgetary cost of participation in the IMF is, however, significantly smaller than the amount of that commitment. The United States and other countries earn interest on the portion of their commitment held by the IMF, and the IMFs assets, including loans to other members, gold, and financial securities, are sufficient to allow it to return those funds to members in most circumstances. Nevertheless, a small risk remains that the IMF could incur losses on its lending so large that it could not repay the United States the full value of its commitment. Because of that risk, participation in the IMF has a cost to the United States, which the Congressional Budget Office currently estimates to be about 2 cents per dollar committed.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 01, 2016
- Accession Number
- AD1013817
Entities
People
- Mitchell Remy
Organizations
- Congressional Budget Office