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Why did the united states sell one-third of its gold reserves in 1971?

User Gdbdable
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The United States sold one-third of its gold reserves in 1971 to address a trade deficit and stabilize the U.S. dollar. The Bretton Woods Agreement, which had established the U.S. dollar as the world's reserve currency, required the U.S. to exchange dollars for gold at a fixed rate of $35 per ounce. However, as the U.S. printed more dollars to finance the Vietnam War and other domestic programs, other countries became concerned about the stability of the U.S. dollar and began exchanging their dollars for gold. This resulted in a depletion of U.S. gold reserves, leading to the decision to sell one-third of the reserves in order to stabilize the dollar and address the trade deficit.

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~~~Harsha~~~

User Pedro Affonso
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