What 1976 agreement formally accepted floating exchange rates under the IMF system?

The 1976 agreement that formally accepted floating exchange rates under the IMF system was the Jamaica Accords.

The accords emerged from meetings of an IMF governors’ committee held in Kingston, Jamaica, on January 7–8, 1976. They recommended amendments to the IMF’s Articles of Agreement and formally recognized the breakdown of the Bretton Woods par-value system. Under Bretton Woods, currencies were tied to fixed or adjustable exchange rates, with the U.S. dollar linked to gold.

The new framework allowed countries to choose their exchange-rate arrangements, including floating currencies, while imposing certain rules against competitive manipulation. It also ended gold’s official monetary role within the IMF framework: gold prices could float, and the system no longer required the dollar to be convertible into gold at a fixed official price.

The timing can cause confusion. The Nixon shock of 1971 began the practical shift toward floating rates, but the Jamaica Accords provided the later legal and institutional recognition. The accords also included assistance for developing countries affected by fluctuating commodity-export earnings.