1. Currencies

2. Money
What is money?

3. What Lead Us Here

4. What Lead Us Here
Gold Coin and Gold Bullion Standards

5. What Lead Us Here Bretton Woods System U.S. dollar fixed to Gold
Other Nations currency fixed to U.S. Dollar
Set up IMF and IBRD (Now World Bank)to hold currencies, maintain ratios and make loans

6. What Lead Us Here
Nixon eliminates U.S. gold standard

7. Purpose of IMF

8. Purpose of IMF
To promote exchange rate stability

9. Purpose of IMF
To facilitate the international flow of currencies and hence the balanced growth of international trade

10. Purpose of IMF
To promote international monetary cooperation

11. Purpose of IMF
To establish a multilateral system of payments

12. Purpose of IMF
To make resources (SDRs plus technical help) available to member nations experiencing balance-of-payments difficulties

13. Special Drawing Rights
The value of the SDR is based upon the weighted average of a basket of four currencies.
Weights for
U.S. dollar 42%
Euro 37%
Japanese yen 19%
British pound 11%

14. Central Banks

15. Central Banks
Set policies for currency manipulation

16. Central Banks
Buy and Sell currencies to try and affect value

17. Central Banks
Hold reserves in Gold, SDR or other currencies

18. Exchange Rate Types

19. Exchange Rate Types
Free Floating

20. Exchange Rate Types
Pegged

21. Exchange Rate Types
Banded Peg

22. Exchange Rate Types
Non Convertible

23. $US as a World Currency

24. $US as a World Currency
85% of all currency exchanges have the $US as half the transaction

25. $US as a World Currency
$ is a reserve currency held by many central banks

26. $US as a World Currency
$ is investment currency in many capital markets

27. $US as a World Currency
$ is a transaction currency in many international commodity markets