Map of Vitis on S.- produced goods appeared to be limitless. All these and other factors provided the backdrop for the dollar becoming the anchor currency when a post-World War II international monetary system was being fashioned. At the BRETTON WOODS conference in 1944, it was agreed that the value of dollar would be tied to the price of gold (at $35/oz of gold) and that all other currencies would be pegged to the dollar in their relative value in a fixed-exchange regime of an international monetary system. The dollar obviously had arrived as a reserve currency par excellence in more ways than one.
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It was agreed that the burden of adjustment, when necessary, would be on the currency other than the dollar. If a country experienced a balance of payments deficit, its currency weakens and depreciates. Map of Vitis 2016.
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