The International Monetary Fund and the Bretton Woods system
At a conference in Bretton Woods, USA, it was agreed to establish The International Monetary Fund (IMF) after the war. The objective of the IMF was to reduce restrictions on trade and to create a system with fixed, but adjustable, exchange rates, to avoid the competing devaluations of the 1930s. Under the fixed-exchange-rate system fluctuations of +/- 1 per cent vis-à-vis the US dollar were accepted. The dollar had a fixed value in gold. It was also a key task of the IMF to administer loan schemes for member countries experiencing balance-of-payments problems.
Denmark joined the IMF and participated in the fixed-exchange-rate system that became known as the Bretton Woods system. The 1942 exchange rate was used as the central rate.
Last update: 05/09/2011
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The International Monetary Fund and the Bretton Woods system
