Check sibling questions

In this method, gold was replaced by the US Dollar $.

All the currencies were fixed in terms of US $.

then they could ben compared against each other

 

Example

If

1 Pound = $2

1 Rupee =0.1$

So

1 Pound = 2/0.1 =2*10/1=20 Rupees

 

Note

This system gave birth to the International Monetary Fund (IMF) as the Centre institution for International Monetary System.

 

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CA Maninder Singh is a Chartered Accountant for the past 12 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.