Which Country Opted Out Of The Bretton Woods Agreement

This decision was officially announced by the French Minister of Information, Georges Gorse, on 25 November 1967. He stated that “the decision of the Bank of France not to make new contributions to the gold pool was decided (in June) and then communicated to the other central banks. The Bank of France felt that its contributions should be limited to a ceiling agreed by mutual agreement on that date and that it should not commit to the other.” (The Washington Post, November 26, 1967) The apparent harmony between Europe and the United States collapsed at the annual meeting of the World Bank and IMF, which met in Rio from 25 to 29 September. U.S. Treasury Secretary Fowler considered presenting concrete proposals that vetoed the common market countries in the year 32/”The Financial Times, September 27, 1967). Michel Debré replied that the agreements on IMF reform were an absolute condition for France`s approval of the liquidity plan. Moreover, he has repeatedly stressed that France would not have supported the DSS if they had somehow been a substitute for gold as the basis of the global monetary system. It set three conditions for the activation of the SDR plan: (1) a collective agreement that committed a cash shortage; (2) improve the adaptation process; and (3) the elimination of the payment deficits of reserve currency countries (Jay, September 27, 1967). The United States, more than any other country, has benefited from the opening up of the world to unfettered trade. The United States has a global market for its exports and has unlimited access to vital raw materials. Moreover, American capitalism could not survive without markets and without allies.

William Clayton, the Assistant Secretary of State for Economic Affairs, was one of countless American politicians who summed up this point: “We need markets — big markets — all over the world where we can buy and sell.” There is no provision in the agreement for the establishment of international reserves. It expected that a new gold production would suffice. In the event of a structural imbalance, it expected national solutions, such as adjusting monetary value or improving a country`s competitive position by other means.