Bretton-Woods System

(banking/foreign exchange) The system of fixed exchange rates with fluctuation grids, in which every member of the International Monetary Fund (IMF) set a specific parity for its currency relative to gold or the dollar, and undertook to keep fluctuations within ±1% of parity by central bank market interventions. This system was in operation from the end of WWII through the early 1970s. See Bretton-Woods Agreement of 1944; International Monetary Fund; International Bank for Reconstruction and Development.

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