The Louvre Accord pledged to support the stability of exchange rates around their 1987 levels by intervening in the foreign exchange markets when necessary to buy and sell currency.

Question

Quizplus · Accepted Answer

The statement accurately describes the purpose and goals of the Louvre Accord signed in 1987 by the Group of Seven (G7) major industrial countries. The agreement aimed to halt the appreciation of the US dollar and reduce global trade imbalances by coordinating foreign exchange interventions and tightening monetary policies. The Louvre Accord reflected a collective effort to stabilize exchange rates and promote economic growth and stability.

The Louvre Accord Pledged to Support the Stability of Exchange