oussama94
05-28-2017, 19:35
Accordingly, a few months later, the Smithsonian Agreement was introduced.
Hailed by President Nixon as the “greatest monetary agreement
in the history of the world,” the Smithsonian Agreement strived to maintain
fixed exchange rates, but to do so without the backing of gold. Its key
difference from the Bretton Woods system was that the value of the dollar
could float in a range of 2.25 percent, as opposed to just 1 percent under
Bretton Woods.
Hailed by President Nixon as the “greatest monetary agreement
in the history of the world,” the Smithsonian Agreement strived to maintain
fixed exchange rates, but to do so without the backing of gold. Its key
difference from the Bretton Woods system was that the value of the dollar
could float in a range of 2.25 percent, as opposed to just 1 percent under
Bretton Woods.