But for a number of reasons, this system of “fixed until further notice” exchange rates proved unstable. It has been abandoned by many countries in favour of one of two options - either a floating-rate regime or the use of another currency. Most have chosen a floating-rate regime.
A few countries have decided to join some kind of monetary union or to use a foreign currency to replace their own. Canada was one of the first countries to adopt a floating-rate regime. It did so at the beginning of the 1950s and, generally, this regime has served us well.