With the exit of fixed parities system, different countries experimented with exchange rate systems.
The breakdown of Bretton Woods System and the subsequent adoption of generalized floating by major industrialized countries, the option were left open to the developing countries to choose their own exchange rate regime in line with national preferences.
Today, exchange rate regimes and practices vary considerably across countries. The widespread adoption of flexible exchange rate system has made major contributions by offering many countries the easier use of an effective means of adjustment and by reducing the political biases against adjustments, which existed under the par value system.
The breakdown of Bretton Woods System and the subsequent adoption of generalized floating by major industrialized countries, the option were left open to the developing countries to choose their own exchange rate regime in line with national preferences.
Today, exchange rate regimes and practices vary considerably across countries. The widespread adoption of flexible exchange rate system has made major contributions by offering many countries the easier use of an effective means of adjustment and by reducing the political biases against adjustments, which existed under the par value system.