Characteristics and Role of International Monetary System and its Relevance to Australian Banking and Economy

INTERNATIONAL
MONETARY SYSTEM

Table of Contents
INTRODUCTION ..........................................................................................................................3
Main Body.......................................................................................................................................3
Explanation of International Monetary System with its features and purpose with relation to
Australian Banking and economy...............................................................................................3
CONCLUSION...............................................................................................................................5
REFERENCES................................................................................................................................6

INTRODUCTION
The word International Monetary System is defined as the system that contains of the
customs, rules and regulations regarding the foreign payments. It is a set up that organise the
financial relations between different nations for bringing the cooperation between the economy
of different countries (Hefeker., 2018) . The following report looks into the importance and
features of International Monetary System. Moreover, it also explains its relevance of IMS in
terms of American Banking and its economy.
Main Body
Explanation of International Monetary System with its features and purpose with relation to
Australian Banking and economy.
International Monetary System- It refers to the system that controls the exchange of
money and its valuations across the different countries. It is a well-designed system that takes
care of international payments, flexibility of capital and exchange rates. It can also be defined as
the well-governed structure that has rule and regulations with respect to the calculation of
exchange rates and international payments. The role of International monetary system are system
are listed below-
 As lot of nations have currencies that are not accepted as the lawful remittance beyond
the line between the different countries, So IMS clear the way for foreign economic
exchange rates.
 The crucial segment of the IMS is to enable the exchange of capital, goods, and services
amid the countries. It comes up with the contribution in order to bring high economic
growth and stability. (Cooper., 2019)
 It fosters the multinational currencies cooperation, also it assist in the financial
international trade and with this it encourages high employment.
 It facilitates the smooth flow of transactions among the countries and its citizen by
keeping the track on the economy of different countries globally.
The features of International monetary system comprises of four components- exchange
rates and exchange arrangements, international capital movements and reserves, international
payments, international transfers. The IMS is usually classified in two dimensions , first is the
role of exchange regimes and the another one is the nature of reserve assets. The exchange rate