Smithsonian Agreement ended Bretton Woods Agreement
Q. Which of the following agreement ended Bretton Woods Agreement?- Published on 18 Aug 15a. Louvre Accord
b. Smithsonian Agreement
c. GATT
d. Plaza Accord
ANSWER: Smithsonian Agreement
According to Bretton Woods Agreement ,all countries peg their currencies to a certain amount of gold. In practice, most currencies were pegged to the U.S. dollar, which was itself pegged to gold. This helped the IMF accomplish its stated goals to stabilize currencies that had experienced a large amount of wartime inflation. The Agreement worked relatively well until the United States unilaterally depegged from gold in 1971.The Smithsonian Agreement formalized this act as the participating nations agreed to allow their currencies to appreciate relative to the dollar. While this Agreement kept the Bretton Woods System in place but ended Bretton Woods Agreement.
