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How did the Bretton Woods system work?

The Bretton Woods system required countries to guarantee convertibility of their currencies into U.S. dollars to within 1% of fixed parity rates, with the dollar convertible to gold bullion for foreign governments and central banks at US$35 per troy ounce of fine gold (or 0.88867 gram fine gold per dollar).

What was the price of gold in the Bretton Woods system?

The exchange rate applied at the time set the price of gold at $35 an ounce. The Bretton Woods system included 44 countries. These countries were brought together to help regulate and promote international trade across borders.

How did the Bretton Woods currency system work?

The Bretton Woods agreement established a currency exchange regime system in 1944, following years of negotiations among 44 nations. This system required a currency peg to the U.S. dollar which was in turn pegged to the price of gold. The Bretton Woods system ultimately would go on to collapse in the 1970s.

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