With the agreement of the Board of Directors, the Executive Director sent a message to all the Fund`s governors on August 19. The latest developments, he said, have raised concerns, while strengthening the system. If we did not act immediately, there was the prospect of disorder and discrimination in monetary and trade relations, which would seriously disrupt trade and undermine the system that had served the world well and which, for a quarter of a century, had been the basis of effective cooperation. Fragmentary approaches to change should not produce positive results, even for a single country, let alone for the entire community of countries represented in the Fund, and he said it was extremely important that action be “fast, collective and collaborative”. This action was entrusted to the Fund and the Fund was able to make an important contribution to the creation of a better monetary system. It intended to rapidly advance the agreement on appropriate exchange rates and other measures that would restore the effective and sustainable functioning of the monetary system. The inability of world governments to establish a system in which exchange rates of currencies would be fixed and stable has left no alternative but to have a floating currency market. That is the phase we are going through today. The Forex market, as we know today, is the result of the failure of Bretton Woods and the Smithsonian agreement. Almost all of the meeting took place at the executive meeting, with ministers and governors agreeing on a model of exchange rate relations between their currencies. With regard to the procedure, Mr Schweitzer considered that the agreement of the major industrialized countries was the first essential step. He was convinced that finance ministers and central bank governors from the Group of Ten countries should not wait for their meeting scheduled for September 26 in Washington, D.C., the Sunday before the opening of the Annual Meeting of the Fund`s Board of Governors.
He felt that it would be too late if the Fund could take appropriate action through the governors of all Member States. That is why he would insist that the Group of Ten meet earlier. The question of when the group of 10 would meet could not be decided by the Fund, but Mr. Schweitzer informed the Executive Directors that he had informed the Canadian Minister of Finance, Mr. Schweitzer.