In July 1944, the Idea for the IMF emerged a UN meeting took place in Bretton Woods, New Hampshire. Key Points In order to prevent a recurrence of the competitive devaluations that had contributed to the Great Depression of the 1930s, the IMF has supported the system of floating exchange rates since the Bretton Woods system collapsed. The IMF implemented a system of convertible currencies with fixed exchange rates and substituted gold as the official reserve with the U.S. dollar. The value of currencies in relation to one another is determined by market forces because countries are free to choose their exchange system. Critics see IMF as the political arm of neoliberal globalization. Thus, (B) and (C) only are the correct answer.