What is the Smithsonian Agreement?

The Smithsonian Agreement was a revision to the Bretton Woods system signed by a group of 10 highly-industrialised countries that made up the G10 in 1971.

The G10 at the time consisted of Canada, France, Germany, Belgium, Italy, Sweden, Japan, the Netherlands, the United Kingdom, and the United States.

All participating nations agreed to re-establish an international system of fixed exchange rates that were not backed by silver or gold. This effectively ended the fixed exchange rate system that was established under the Bretton Woods Agreement.