The US dollar was issued in 1792, and in 1944 the “Bretton Woods” agreement was launched, which made the dollar the international monetary standard for all world currencies. The agreement stipulates that whoever hands over $35 to America, America will receive an ounce of gold, and the dollar has become called a “hard currency” and has gained great international confidence because it has gold coverage. Thus, the United States was committed to supporting every dollar abroad with gold, which made the exchange rate Foreign currencies are fixed compared to the dollar.
In 1971, the President of the United States, “Richard Nixon” stated that holders of the dollar cannot exchange it for gold! This statement came as a great shock to all countries of the world, and because the dollar is strong because of the US economy and not because of the agreement, he announced that he will add the dollar in the market to speculate on it, and its exchange rate will be determined by supply and demand.
Because of the huge amounts of dollars stored in the banks of the world’s countries, in the hope that they would receive gold in return for it at an earlier time! They could not object to Nixon’s decision, hoping that the stored dollars would get something for them.
This incident was called the “Nixon shock“, and it was a series of economic measures taken by “Nixon”, the most important of which was to cancel the conversion of the US dollar to gold.
President Richard Nixon said
(We must play the game as we made it, and they must play it as we set it),
and this system still exists today, “America prints whatever paper it wants and buys the goods of all peoples with it.”
