The story of $$$... continued
The story of American Dollar..,,,, Continued :- The Bretton Woods Agreement was created in a 1944 conference of all of the World War 2 Allied nations, 44 in number. It took place in Bretton Woods, New Hampshire. Under the agreement, countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar. How exactly would they do it? If the currency of a country would became weak relative to the dollar, the bank would buy up its currency in foreign exchange markets. That would decrease the supply, which would raise the price. If the currency became too high, the bank would print more. That would increase the supply and lower the price. All participating countries agreed to avoid any trade warfare. for example they wouldn't lower their currencies strictly to increase trade. But they could regulate their currencies under certain conditions. for example, they could take action if foreign direct investment began