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PR Newswire
19-12-2013, 10:15 PM
Sparks are flying but I am not so sure that forumners are getting their sequence of events correct.
Post WWII, some nations got together at Bretton Woods to peg their currencies to the USD and for USD to be pegged to gold at USD35 per ounce. Central Banks are able to redeem their USD for gold with the Federal Reserve. The IMF and World Bank were also created during this meeting. This is normally referred to as the Bretton-Woods agreement.
When Nixon dropped the gold peg, nations continue to "retain" the practice of keeping their fx reserves in USD which effectively became a reserve currency.
Post WWII, some nations got together at Bretton Woods to peg their currencies to the USD and for USD to be pegged to gold at USD35 per ounce. Central Banks are able to redeem their USD for gold with the Federal Reserve. The IMF and World Bank were also created during this meeting. This is normally referred to as the Bretton-Woods agreement.
When Nixon dropped the gold peg, nations continue to "retain" the practice of keeping their fx reserves in USD which effectively became a reserve currency.