Exchange Rates and the “New” International Monetary Order

In the past few years there has been a radical transformation of international monetary relations. Since 1973 a large number of countries have abandoned the Bretton Woods system of fixed par values for their currencies and have adopted a variety of exchange rate arrangements. These new practices are shortly to be sanctioned by an amendment to the Articles of Agreement of the International Monetary Fund. This paper examines recent developments in exchange rate practices and the proposed role of the Fund in regard to the conduct of exchange rate management.