In the recent past, international currency exchange rates were bas on the “Gold Standard”. Each currency was back by a certain amount of real gold for which it could be exchang, and the value of one currency relative to another was determin primarily by its price in gold.
However,, such as: the impossibility of quickly issuing new money supply (emission), the risk of banks and enterprises experiencing a liquidity crisis (due to the impossibility of quickly selling assets at market price), the difficulty of transporting gold and the ne to maintain its reserves.
For these reasons and in connection
With the crises of growth of international trade, the world powers in 1944 agre on a new financial system that would organize monetary relations and trade settlements.
Thus the Bretton Woods monetary system was born.
In effect, it establish the asia mobile number list American dollar as the single world currency. Gold was valu strictly at $35 per troy ounce, and exchange rates were pegg to the dollar and were only allow to change in the event of a significant imbalance system had in the balance of payments.
The US currency, which held 70 percent of the world’s gold reserves, became the basis for international settlements, which help establish the hegemony of the states in the world economy. The Gold Dollar Standard was establish and exist for 30 years.
The collapse of this system was inevitable
The US gold reserves were afb directory melting before our eyes, despite all the attempts of the Americans to limit the exchange of dollars for gold. The slowdown of the US economic growth, their trade deficit, and the internal crisis l the US government head by Richard Nixon to the decision to refuse the conversion of dollars into gold in 1971.
Over the next system had the lead nurturing process in the sales funnel decade, a system of currency trading with floating exchange rates emerg in the world economy.
