Part V Public International Law of Money, 22 International Rules of Monetary Conduct

Subject(s):

Dollar — Exchange Rates — Revaluation and devaluation — International monetary conduct

This chapter explores the impact of public international law in relation to the monetary conduct of States. ‘Monetary conduct’ in this context refers to the manner in which a State may seek to exercise its monetary sovereignty, for example, by seeking to fix the exchange rate of its own currency by reference to the unit of account of another State or by imposing exchange controls. In general terms, rules of monetary conduct which arise from treaties in principle apply only as between the States which are parties thereto. It would therefore generally be wrong to assume that any such treaties express universally binding duties. The chapter then looks at the enforcement of treaty rules, the stability of exchange rates, floating exchange rates, monetary pegs, and dollarization. It also considers the manipulation of exchange rates, discriminatory currency arrangements and multiple currency practices, convertibility for current international transactions, and bilateral agreements.