The Bretton Woods agreement had an Achilles' heel: the system could not work if its key currency,the British pound,was under speculative attack.

Question

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The Bretton Woods system's key currency was the US dollar, not the British pound. The system relied on the stability of the US dollar, which was convertible to gold, to maintain fixed exchange rates among member countries.

The Bretton Woods Agreement Had an Achilles' Heel: the System