Under the fixed exchange rate system,the dollar could be devalued only if all countries agreed to simultaneously revalue against the dollar.

Question

Quizplus · Accepted Answer

Under the fixed exchange rate system, the value of a currency could only be changed with the agreement of all countries involved in the system. So, if the United States wanted to devalue the dollar, it would need the agreement of other countries to simultaneously revalue their currencies against the dollar to maintain the fixed exchange rate.

Under the Fixed Exchange Rate System,the Dollar Could Be Devalued