What Is The Bretton Woods Agreement Created

By 15 oktober 2021 Niet gecategoriseerd

If the value of a country`s currency became too low against the dollar, the bank would buy its currency on the foreign exchange markets. The Bretton Woods Agreement was a financial agreement negotiated in 1944 towards the end of World War II. Allied nations met in Bretton Woods, New Hampshire, to discuss the international economy. During the negotiations, they agreed to set the value of the US dollar relative to the value of gold and to link the currencies of other countries to the US dollar. The agreement also established the International Monetary Fund (IMF). The Bretton Woods system remained in place until the United States ended the gold standard in 1971. In the Bretton Woods system, each currency involved in the agreement had a known value in U.S. dollars or gold. Anyone could convert their foreign currency into dollars, and anyone who held dollars could turn their dollars into gold.

Han Heijboer

Author Han Heijboer

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