Dollar standard

Updated: Aug 20, 2021

A system of exchange rate management in which other countries peg the exchange rates of their currencies to the US dollar, and hold their foreign exchange reserves mainly in the form of US dollars. The Bretton Woods exchange rate system operating in the 1950s and 1960s was effectively a dollar standard. More recently, the decline of the dominant position of the United States in the world economy has made the adoption of a worldwide dollar standard less likely.

Reference: Oxford Press Dictonary of Economics, 5th edt.

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James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.