The Second Amendment, which is the protocol under which the IMF functions in the early 1990s, effectively ended the organization's role in currency exchange rate control. With implementation of the Amendment, member nations were free 4to adopt exchange rate arrangements of their own choice. The result has generally been a situation characterized by a market determination of exchange rates for most currencies. The Second Amendment also abolished the official price of gold (the United States dollar was no longer tied to a specified gold price), and the requirement for the mandatory settlement in gold of accounts between member nations was terminated. The deemphasis of gold as a payment and reserve medium was accom panied by an increased role for IMF special drawing rights (SDRs) for these purposes. The SDR is an international reserve asset created by the IMF, which is allocated to member coun tries in proportion to their position in the organization's total ass
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