The International Monetary System (IMS) is a framework of institutions,

policies, and regulations that govern the exchange of currencies and the
management of international financial flows. It is designed to promote global
economic stability and growth by ensuring the smooth functioning of
international trade and investment.

The IMS was established in 1944, following the Bretton Woods Conference,
with the creation of the International Monetary Fund (IMF) and the World
Bank. The main objective of the IMS is to promote international monetary
cooperation and exchange rate stability, and to provide a mechanism for
countries to address balance of payments problems.

The IMS is based on a system of fixed exchange rates, where each country's
currency is pegged to the US dollar, and the US dollar is pegged to gold.
However, this system was abandoned in 1971 due to increasing economic
pressures, and the IMS has since moved to a system of floating exchange
rates, where exchange rates are determined by market forces.

The IMS also includes a number of institutions and bodies that play important
roles in promoting international monetary cooperation and stability. The IMF,
for example, provides financial assistance and policy advice to countries in
need, while the World Bank focuses on promoting economic development and
poverty reduction in developing countries. Other institutions such as the
International Financial Corporation (IFC), the International Centre for
Settlement of Investment Disputes (ICSID), and the Financial Stability Board
(FSB) also play important roles in the functioning of the IMS.

Overall, the International Monetary System is an important framework that

plays a key role in promoting global economic stability and growth by
ensuring the smooth functioning of international trade and investment,
addressing balance of payments problems, and fostering economic
development and poverty reduction in developing countries.
The subsidiary bodies of the international monetary system include:
 International Monetary Fund (IMF) - responsible for overseeing the global financial system and
providing financial assistance to member countries in need.
1. World Bank - provides financial and technical assistance to developing countries for economic
development and poverty reduction.
2. International Financial Corporation (IFC) - a member of the World Bank Group that focuses on
promoting private sector development in developing countries.
3. International Centre for Settlement of Investment Disputes (ICSID) - provides facilities for the
conciliation and arbitration of investment disputes between member countries.
4. Financial Stability Board (FSB) - an international body that coordinates the efforts of national
financial authorities and international standard-setting bodies to promote global financial stability.
5. Basel Committee on Banking Supervision - an international body that sets global standards for
banking regulation and supervision.
6. International Association of Insurance Supervisors (IAIS) - a global organization of insurance
supervisors that promotes cooperation and information sharing among members.
7. International Organization of Securities Commissions (IOSCO) - an international body that promotes
cooperation among securities regulators and sets global standards for securities markets.