The economic crises of 1929-1933 had a disruptive impact on the global economy. Numerous banks collapsed, savings were lost, agricultural prices plummeted, land values dropped, factories closed, and unemployment soared. Furthermore, the international financial system and currency exchanges were thrown into disarray. The loss of faith in paper money led to a surge in demand for gold, causing financial institutions to accumulate more gold reserves. As a result, some countries, most notably Great Britain, abandoned the gold standard where each currency unit was tied to a specific amount of gold.

The overall situation was made more complex by the different stances of countries on the gold standard in international trade, leading to a lack of uniformity. Some government officials favored barter trading, increasing the swapping of national currency for foreign currencies.

The balance between money and commodities was severely disrupted. Between 1929 and 1932, global prices dropped by 48%, and world trade volume plummeted by 63%. In this critical situation, half-measures were insufficient. A united effort from all nations was necessary to establish a new currency system, international financial institutions, and robust financial regulations.

Despite numerous international conferences in the 1930s to address the world currency system issues, no concrete outcomes were reached.

At the beginning of 1940, Harry Dexter White from the United States and John Maynard Keynes from Great Britain independently proposed ideas for the IMF.

White and Keynes' proposals were discussed within the UN framework, and on July 22, 1944, the UN Commission approved the creation of an international investment bank and a regulatory fund. These proposals were then presented to the delegates of the Bretton Woods Conference for consideration. The conference ultimately agreed to establish international financial institutions, leading to the founding of the International Bank for Reconstruction and Development and the International Monetary Fund (IMF) following the signing of the agreement.

The International Monetary Fund (IMF) began operating in May 1946, with its headquarters in Washington D.C. The IMF has a membership of 190 countries.

The IMF's structure, as outlined in the Articles of Agreement, includes the following bodies:

- Board of Governors, Interim Committee, Development Committee;

- Executive Board;

- The IMF Committee on Balance of Payments Statistics;

- Managing Director.

The Board of Governors, comprised of representatives from member countries such as Finance Ministers or Central Bank governors and deputies, is regarded as the highest governing authority of the fund. This board is elected for a five-year term and convenes once annually.

The Board of Governors will form an Interim Committee comprised of its members.

The Executive Board (Board of Directors) manages the operations of the Fund. It comprises 24 executive directors, 7 elected by member states (USA, Japan, Germany, Great Britain, France, China, and Saudi Arabia) and 17 elected by the board of directors. The Executive Board appoints a Managing Director, who typically should be European, to serve as the Chairman of the Board.

The Development Committee, also known as the Joint Ministerial Committee, with the Interim Committee, presents a recommendation and report to the Board of Governors regarding the fund reserve and outlines the primary focus of aid to specific countries.

The IMF Committee on Balance of Payments Statistics examines countries' balance of payments status.

The Managing Director serves as a member of the IMF's governing bodies. Alongside the 24 executive directors, the Managing Director acts as the chairman of the Executive Board, traditionally representing Europe. Appointed by the Executive Board, the Managing Director oversees the fund's daily operations.

BVF consists of five departments that handle:

1. Tax issues;

2. Legal concerns;

3. Membership inquiries;

4. Operation and settlement services;

5. Currency and exchange matters.

The IMF is a global organization that performs regulatory, supervisory, advisory, and financial functions. Its regulatory role involves monitoring member countries' compliance with their obligations upon joining the organization. This monitoring is done regularly, through annual bilateral consultations between IMF staff and the countries' officials on economic policy matters.

The IMF offers technical assistance and human resource development support to help member states build capacity for successful policy-making and implementation.

Azerbaijan became a member of the IMF on September 18, 1992.

Recommended literature:

1. Gənciyev, Gəncəli Əziz oğlu. Beynəlxalq iqtisadi münasibətlər: müasir vəziyyət və inkişaf problemləri /G. Gənciyev ; elmi red. Ə. Q. Əlirzayev. - Bakı: Elm, 2005. - 258 s.
2. Əlirzayev, Elvin Vahid oğlu. Beynəlxalq maliyyə təşkilatları və Azərbaycanla qarşılıqlı əlaqələr : dərs vəsaiti / E.V Əlirzayev, Ş. Z. Muxtarov, E. Süleymanov ; elmi red. M. B. Əzizov ; Bakı Mühəndislik Universiteti. - Bakı : Adiloğlu, 2019. - 188 s.
3. Borodulina, Lyudmila Pavlovna. Beynəlxalq iqtisadi təşkilatlar : dərs vəsaiti / L. P. Borodulina, İ. A. Kudryaşeva, V. A. Yurqa ; rus dilindən tərc. Ə. Ə. Ələkbərov. - Bakı : İqtisad Universiteti nəşriyyatı, 2008. - 372 s.
4. Beynəlxalq iqtisadi təşkilatlar: dərslik / Ə. H. Ələkbərov [et al.] ; elmi red. M. M. Sadıqov ; Odlar Yurdu Universiteti. - Bakı : Çaşıoğlu, 2010. - 384 s.