Thème 1 - Finance The convertibility of the US dollar to gold was unilaterally terminated in 1971 and from that time on occidental currencies became free- floating with their exchange rates set on the international foreign exchange market. When interest rates were set by agreements, countries could engage in currency wars by voluntarily devaluating their currency. It is much more difficult to do when currency exchange rates are floating on the international exchange market. However, not all sovereign currencies are freely floating. The IMF promotes financial stability, money cooperation and international trade. It has often granted loan to countries in need on the condition that they implement specific reforms such as privatizing national companies or undergoing labor reforms. 189 countries are IMF members, and the IMF is headquartered in Washington DC. The World Bank acts as an investment bank which borrows and lends money, issues bonds and collects membership fees from 180 countries. The World Bank institutions includes the International Bank for Reconstruction and Development (IBRD), and the International Development Association (IDA). In 2018, India and China were the largest World Bank's loans recipients. The world Bank is also headquartered in Washington DC; it publishes many economic reports. & TECHNICAL TERMS A delegate The World Bank The International Monetary Fund (IMF) The Bretton Woods System An exchange rate A currency war To devaluate To implement (a reform) To privatize International Bank for Reconstruction and Development (IBRD) International Development Association (IDA) Un représentant, un délégué La Banque Mondiale Le Fonds Monétaire International (FMI) Le système des accords de Bretton Woods Un taux de change Une guerre des monnaies Dévaluer Mettre en œuvre (une réforme) Privatiser Banque Internationale pour la Reconstruction et le Développement (BIRD) Association Internationale de Développement 82