oussama94
05-28-2017, 19:36
Ultimately, the Smithsonian Agreement proved to be unfeasible as
well. Without exchange rates fixed to gold, the free market gold price shot
up to $215 per ounce. Moreover, the U.S. trade deficit continued to grow,
and from a fundamental standpoint, the U.S. dollar needed to be devalued
beyond the 2.25 percent parameters established by the Smithsonian
Agreement. In light of these problems, the foreign exchange markets were
forced to close in February 1972.
well. Without exchange rates fixed to gold, the free market gold price shot
up to $215 per ounce. Moreover, the U.S. trade deficit continued to grow,
and from a fundamental standpoint, the U.S. dollar needed to be devalued
beyond the 2.25 percent parameters established by the Smithsonian
Agreement. In light of these problems, the foreign exchange markets were
forced to close in February 1972.