The Smithsonian Agreement allowed for a devaluation of the dollar and for a widening of the boundaries within which currencies were allowed to fluctuate.

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The Smithsonian Agreement, reached in December 1971, allowed for a devaluation of the US dollar and expanded the fluctuation bands within which currencies could move against the dollar, marking a significant shift from the fixed exchange rate system established by the Bretton Woods Agreement.

The Smithsonian Agreement Allowed for a Devaluation of the Dollar