International Monetary System

The International Monetary System is a framework that governs how countries exchange currencies and how their financial systems interact globally. It includes rules and institutions that ensure stability in foreign exchange rates, facilitate international trade, and manage balance of payments. Essentially, it helps countries determine the value of their currencies relative to others, allowing for smoother transactions and investments across borders. A stable international monetary system is crucial for economic growth, as it reduces uncertainty and promotes confidence among traders and investors worldwide.