Forty years ago, politicians from around the world convened in New York’s Plaza Hotel to try to solve a growing problem with the U.S. dollar.
At the time, the dollar was extremely expensive relative to other currencies.
That high valuation was hurting global trade. U.S. exports fell off, while imports soared… And America was threatened by a growing trade deficit.
So in September 1985, these politicians agreed to work together to gradually lower the value of the dollar. They dubbed their agreement the “Plaza Accord” – and it dropped the dollar’s exchange rate by 25% in two years.
The Plaza Accord 2.0 may be coming – in the form of what some have called a “Mar-a-Lago Accord.”
This post originally appeared at DailyWealth.