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Definition of 'Smithsonian Agreement '
An agreement reached by a group of 10 countries (G10) in 1971 that effectively ended the fixed exchange rate system established under the Bretton Woods Agreement. The Smithsonian Agreement reestablished an international system of fixed exchange rates without the backing of silver or gold, and allowed for the devaluation of the U.S. dollar. This agreement was the first time in which currency exchange rates were negotiated.
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Investopedia explains 'Smithsonian Agreement '
The Smithsonian Agreement led to an approximately 8% devaluation of the U.S. dollar, and raised the price of gold from $35 to $38. The agreement was praised by then-U.S. President Richard Nixon as "the most significant monetary agreement in world history." However, the par value system began to lose its popularity in 1972-1975, and economic forces compelled several countries to switch.
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Search results for 'Smithsonian Agreement '
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http://www.investopedia.com/articles/forex/09/smithsonian-agreement-1971.asp
The Smithsonian Agreement hurt the US in the short-term, but was necessary
in furthering real market-driven exchange rates. ...
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http://www.investopedia.com/articles/forex/10/international-money-market.asp
... 1971 and formally implemented in May 1972, although its roots can be traced to the
end of Bretton Woods through the 1971 Smithsonian Agreement and Nixon's ...
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http://financialedge.investopedia.com/financial-edge/0411/Why-You-Dont-Want-A-Government-Shutdown.aspx
... run out the offices will need to close until an agreement is reached ... parks such as
Yellowstone, and other public destinations like the Smithsonian museums will ...
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