two-tier gold system

two-tier gold system

▪ international money reserves
      arrangement set up to protect international monetary reserves from the pressure of higher gold prices; under a two-tier system, monetary gold used as reserves would sell at a fixed price, and gold used as an ordinary commodity would sell at a freely fluctuating market-determined price.

      The system was formulated in an agreement reached by seven members of the London gold pool (Great Britain, West Germany, Switzerland, The Netherlands, Belgium, Italy, and the United States) on March 17, 1968. The monetary authorities agreed not to sell monetary gold on the London market or any other private gold market; the stock of officially held gold was to be maintained at the existing level and only transferred among countries in settling international debts. The governments agreed to cooperate to maintain the existing parities among their currencies and pledged not to sell gold to any country that had sold its official gold in private markets for a profit. Within weeks after the agreement had been formulated, most other countries had adhered to it.

      The expectation was that the market price of gold would settle above the monetary price of $35 an ounce, but, in fact, it fluctuated widely both above and below this price. The two-tier system lost its usefulness when the U.S. government terminated official trading in gold in August 1971; in November 1973 the system was terminated by agreement between the seven original adherents.

* * *


Universalium. 2010.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • Health care system — A health care system is the organization of people, institutions, and resources to deliver health care services to meet the health needs of target populations. There is a wide variety of health care systems around the world, with as many… …   Wikipedia

  • Reichsbanner Schwarz-Rot-Gold — The Reichsbanner Schwarz Rot Gold was a Republican paramilitary force set up during the Weimer Republic in 1924.Their party name, literally translated from German, means Red, Gold, Black Country Flag .The RB (Reichsbanner Party) was one of many… …   Wikipedia

  • ДВУХЪЯРУСНАЯ СИСТЕМА РЫНКА ЗОЛОТА — TWO TIER GOLD SYSTEM17 марта 1968 г. управляющие центральных банков США и шести европейских стран (члены ЗОЛОТОГО ПУЛА) приняли решение в Вашингтоне (округ Колумбия) о создании Д.с.р.з. Согласно договоренности, офиц. операции между этими странами …   Энциклопедия банковского дела и финансов

  • Schwaben football league system — The Schwaben football league system is a league system operating in the Bavarian Bezirk of Schwaben [ Das Fussball Jahresjournal, an annual publication by the Schwaben FA, publisher: Schwäbischer Fussball Verband] .OverviewThe Schwaben football… …   Wikipedia

  • Beatmania IIDX 14: Gold — Beatmania IIDX 14 Gold Titlescreen of the CS version Developer(s) Kona …   Wikipedia

  • Dorset — For other uses, see Dorset (disambiguation). Dorset …   Wikipedia

  • Economic history of Portugal — This article covers the economic history of Portugal.Portugal was once one of the largest and most powerful political and economic powers in the world. Since the 16th century to the end of the Estado Novo regime in 1974, Portugal s dominions were …   Wikipedia

  • Hungary — This article is about the European country. For other uses, see Hungary (disambiguation). Republic of Hungary Magyar Köztársaság …   Wikipedia

  • Indigénat — The Code de l indigénat was a set of laws creating, in practice, an inferior legal status for natives of French Colonies from 1887 until 1944 1947. [The Code d Indigénat was promulgated by the French government on 28 June 1881, and officially… …   Wikipedia

  • Ipswich — For other uses, see Ipswich (disambiguation). Ipswich Borough of Ipswich Common Quay, Ipswich Docks …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”