Chapter 6 Part 1 - Foreign Exchange Rates

Chapter 6 Part 2 - Balance of Payment →
Economics Class 12
Macroeconomics

What is Bretten Woods System(1944-1971)

Last updated at Dec. 13, 2024 by

In this method, gold was replaced by the US Dollar $.

All the currencies were fixed in terms of US $.

then they could ben compared against each other

 

Example

If

1 Pound = $2

1 Rupee =0.1$

So

1 Pound = 2/0.1 =2*10/1=20 Rupees

 

Note

This system gave birth to the International Monetary Fund (IMF) as the Centre institution for International Monetary System.

 

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CA Maninder Singh is a Chartered Accountant for the past 14 years and a teacher from the past 18 years. He teaches Science, Economics, Accounting and English at Teachoo