Definition of Exchange Rate Regime

In the wake of the collapse of the Bretton Woods exchange rate system, the IMF appointed the Committee of Twenty that suggested for various options for exchange rate arrangement. Those suggestions were approved at Jamaica during February 1976 and were formally incorporated into the text of the Second Amendment to the Articles of Agreement that came into force from April 1978. The options were broadly:

1. Floating-independence and managed

2. Pegging of currency

3. Crawling peg

4. Target-zone arrangement