ange to + 2.5 percent (Heller, 1993).
The crude oil price and supply shocks of the mid-1970s and other economic difficulties experienced by many of the developed countries soon made it apparent that the new regime would be unworkable. Consequently, the Second Amendment of the Articles of Agreement was accepted by member nations of the IMF and became effective in 1978, effectively ended the organization's role in currency exchange rate control (Heller, 1993).
With implementation of the Second Amendment, member nations were free to 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 and the requirement for the mandatory settlement in gold of accounts between member nations was terminated. The de-emphasis of gold as a payment and reserve medium was accompanied by an increased role for IMF special drawing rights (SDRs) for these purpo
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