Dollars Domination In Global Economy
A world currency is any money that can freely be used or exchanged for another currency inside or outside the borders of the country that issues it. It may also be called as Global currency. The Agreement of Bretton Woods The United States supplied the Allies with materials and weaponry prior to entering World War II. By the end of the war, the U.S. had the majority of the gold reserves since most nations made their payments in gold. As nations exhausted their stockpiles, a restoration to the gold standard was unachievable. In 1944, representatives from forty-four Allied nations convened in Bretton Wood, New Hampshire, to devise a framework for managing foreign exchange that would not put any nation at a disadvantage. The group determined that the world's currencies will now be fixed to the US dollar rather than gold. The Bretton Woods Agreement, as it was referred as, established the power of central banks to uphold fixed exchange rates between different currencies and the US do