Question

International Business:

What was the Jamaica Agreement? When was it signed? Identify and explain what was created at the Jamaica Agreement.

Answer 1

Jamaica agreement was signed to allow managed float of gold price by benchmarking with respect to US dollar and other foreign currencies. It marked the end of Bretton woods system
It was signed in 1976
It created provision of SDR (special drawing rights) which would provide loans at cheaper rates for developing countries The IMF chose variable exchange rate parities with currencies of developing countries as opposed to fixed rates earlier. The IMF also allocated more resources for developing countries.

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