Brian Zachary J_ Moore#22

Xem bản dịch

What is the Bretton Woods system and how did it shape modern forex?

The Bretton Woods system, established in 1944, pegged global currencies to the U.S. dollar, which itself was convertible to gold at $35 per ounce. This framework created exchange rate stability for nearly three decades, fueling post-war economic growth. However, by the late 1960s, U.S. deficits and inflation pressures made the system unsustainable. In 1971, President Nixon suspended dollar-gold convertibility, leading to the system’s collapse and the birth of floating exchange rates. Lessons for forex traders: currency stability depends on trust, but structural imbalances force change. Today’s forex market—trillions traded daily—grew out of Bretton Woods’ collapse. Understanding it explains why USD remains dominant: its central role was institutionalized 80 years ago.