
Forex Trading Knowledge : How The Plaza Accord Affected Exchange Rates - Whenever a nation makes the mistake of overvaluing its currency, exchange rates start to become hugely affected and this causes all sorts of trading problemshis is exactly what happened in the United States and it took the intervention of five of the world's biggest monetary powers to solve the problemhe 1985 Plaza Accord was an extremely important event in modern monetarys as it was designed to devalue the US Dollar in relation to the yen (Japan) and the deutsche mark (West Germany)his all came about after a classic mistake from the United States Federal Reserve Systemn the monetary world, if exchange rates of currencies become artificially high against others, they are considered to be overvalued and this in turn has the negative effect of making a country's foreign exports more expensive which naturally makes them less competitivehis is precisely what happened in the United States in the early 1980s when President Reagan introduced enormous tax cuts which expanded the U ... [Read More ! Forex Trading Knowledge]
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