A safe harbour during the storm
The 1970s was a decade of turmoil for global currency markets, with many of the world's largest countries abandoning fixed currency exchange rates in favour of the floating rates we know today.
Businesses around the world had their first taste of the day-to-day volatility that exists in modern global foreign exchange markets, and learned what it means to be supported by a trusted provider, offering a solid business relationship and transparent exchange rates.
From 1946 until 1971, the way the world's financial nations exchanged currency was determined by the Bretton Woods agreement of 1944. The value of the US dollar was fixed to the price of gold, and countries signing up to Bretton Woods were required to fix their currencies to the US dollar.
The system put significant pressure on the US economy, where high levels of public debt and domestic inflation were causing the dollar to become considerably overvalued.
In August 1971, US President Richard Nixon, made a unilateral executive decision to temporarily suspend the convertibility of US dollars to gold, thereby effectively floating the currency.
Managing FX volatility and supporting our customers