2. Under the Bretton Woods system, the convertibility of the US dollar to gold and the adjustable pegged exchange rate system are the two pillars of this monetary system, and the International Monetary Fund is the central institution to maintain the normal operation of this system, with three functions: monitoring the international exchange rate, providing international credit and coordinating international monetary relations. It is conducive to the external expansion of the American economy and becomes the world currency and foreign exchange. Can control the economies of all countries in the world. The establishment of the Leiden Woods system is conducive to the trade and development among countries in the world and to an effective and stable international monetary system. The increasing globalization of the world economy requires a unified financial and monetary system, and the United States has the strength to establish an international monetary system with gold and the dollar as the core.
3. Contents of the Bretton Woods system
The essence of the Bretton Woods system is to establish an international monetary system centered on the US dollar. Its basic content is that the dollar is linked to gold, and the currencies of other countries are linked to the dollar, and a fixed exchange rate system is implemented.
(a) Currency parity of pegged countries.
That is, the exchange rate regulations and adjustment principles, the main provisions are as follows:
1. The dollar is pegged to gold. That is, countries have confirmed the official gold price of $35 per ounce set by the United States in June1934+1October, and the gold content per dollar is 0.8 1 gram of gold. The government or central bank can exchange dollars for gold from the United States at official prices. In this way, the dollar and gold have the same status, and the currencies of other countries cannot be exchanged for gold. In order to protect the official price of gold from the impact of the free market gold price, governments need to cooperate with the US government to maintain this official price of gold in the international financial market.
2. The currencies of other countries are pegged to the US dollar. Other governments set the gold content of their respective currencies and determine the exchange rate with the US dollar through the proportion of gold content. Member States can also set the exchange rate with the US dollar instead of the gold content of the currency. For example, in 1946, the gold content of L pound is 3.58 134 grams of pure gold, and the gold content of 1 dollar is 0.88867 1 gram of gold, so the ratio of gold content (gold parity) between pound pound and dollar is 1 pound = 3.58.
3. Implement an adjustable fixed exchange rate. According to the agreement of the International Monetary Fund, the exchange rate of national currencies against the US dollar can generally only fluctuate within the range of 1% above and below the legal exchange rate. If the market exchange rate exceeds the fluctuation range of the legal exchange rate 1%, governments are obliged to make predictions in the foreign exchange market to maintain the stability of the exchange rate. The exchange rate system of Bretton Woods system is called "adjustable pegged exchange rate system". If the change in the legal exchange rate of a member country exceeds 10%, it must be approved by the International Monetary Fund. 19711February, the fluctuation range of the spot exchange rate was expanded to 2.25% up and down, and the standard for determining "parity" was changed from gold to special drawing rights.
(2) The principles of currency convertibility and international payment and settlement.
The Agreement stipulates the principle of free convertibility of currencies of all countries: in current account transactions, any member country exchanges its own currency accumulated by other member countries, if the other party converts it into current account currency. Because it is unrealistic for all countries to implement the principle of currency convertibility immediately, the Agreement also provides for a "transition period".
Regarding the principles of international payment and international settlement, the agreement stipulates that without the consent of the International Monetary Fund, member countries shall not restrict the payment or settlement of current account of international payments.
(3) Determination of international reserve assets
In this system, foreign exchange and gold are juxtaposed, and * * * together constitute international reserve assets. The provisions on currency parity in the Agreement make the US dollar "equivalent" to gold and become the most important international reserve currency in foreign exchange reserves of various countries.
(d) balance of payments adjustment
25% of IMF member countries' shares are paid in gold or currencies convertible into gold, and the remaining 75% are paid in domestic currencies. When a member country has a balance of payments deficit, it can buy (that is, borrow) a certain amount of foreign exchange from the IMF in its own currency according to the prescribed procedures, and repay the loan by repurchasing its own currency within the prescribed time. The larger the share subscribed by member countries, the more loans they get. Loans are limited to member countries to make up the balance of payments deficit, that is, to pay the current account.
(v) Establishment of the International Monetary Fund
The establishment of a permanent international financial institution, the International Monetary Fund, is a major feature of the Bretton Woods system.
The Agreement clarifies the purposes of the International Monetary Fund: ① To establish the International Monetary Fund and promote international monetary cooperation. (2) Promote the balanced development of international trade and investment, so as to improve the employment and real income level of member countries and expand production capacity. ③ Promote exchange rate stability, maintain normal exchange relations and avoid devaluation of competitive currencies. ④ Establish a multilateral payment system and strive to abolish foreign exchange control. ⑤ Provide financing for member countries and correct the imbalance of international payments. ⑥ Narrow or reduce the expansion of the balance of payments deficit or surplus.
The agreement gives the IMF the following functions: ① supervision function. Supervise member countries to abide by the provisions of the agreement and maintain the order of international financial and foreign exchange transactions. ② Advisory function. Member States hold regular consultations once a year in principle; Hold regular consultations on the world economic situation and prospects; When a member country revises its exchange rate measures or policies, or implements policies that have a significant impact on other member countries, or the International Monetary Fund thinks that a member country's exchange rate policy does not conform to the guiding principles of the agreement, the managing director of the International Monetary Fund will hold special consultations with that country.
③ Financing function. That is, to provide loans to deficit countries to stabilize the foreign exchange market and expand international trade. Based on the above functions, the IMF is actually in the post-war international monetary system. In the Bretton Woods system, the exchange of dollars for gold and the implementation of fixed exchange rate system in various countries are the two pillars of this monetary system, and the IMF is the central institution for the normal operation of this monetary system.