197 1 1 In February, the Smithsonian Agreement replaced the Bretton Woods Agreement, which was similar to the Bretton Woods Agreement, but allowed the currency to float in a wider range. 1972 Europe is trying to get rid of the long-term dollar binding. At that time, West Germany, France, Italy, the Netherlands, Belgium and Luxembourg established European floating exchange rates. This agreement is also very similar to the Bretton Woods agreement, but it allows the currency value to fluctuate in a wider range.

The above two agreements have similar mistakes with the Bretton Woods system. 1973, two protocols collapsed. 1973 the Smithsonian agreement and the disintegration of the floating exchange rate in Europe marked the beginning of the formal transition to a free floating exchange rate. This change is entirely accidental, because there is no other new agreement to replace it. Governments are free to bind, semi-bind or allow exchange rates to float completely. 1978, the free floating exchange rate system was officially put into use.

Through the last effort, Europe got rid of the dollar and established the European monetary system in July 1978. But like all previous protocols, 1993 system crashed.

Changes in major currencies are no longer related to changes in other currencies. Anyone who wishes to trade in money can trade in money. Therefore, banks, hedge funds, middlemen and individuals are all involved in speculation. The government's central bank occasionally intervenes in the exchange rate or tries to move it to the level they want. However, the potential factors driving the foreign exchange market at present are supply and demand. For today's foreign exchange market, a freely floating exchange rate is very ideal. If our planet falls into a world war similar to that in the early 20th century, how will the foreign exchange market be affected? Will the dollar continue to play the role of a safe haven as it did in the past few years? Only time will tell.