What was the last country to give up the Gold standard?
Question #101946. Asked by author.
Last updated Sep 01 2016.
zbeckabee
Answer has 4 votes
zbeckabee Moderator 19 year member
11752 replies
Answer has 4 votes.
I'm finding Switzerland in 1999 -- Though, the mention is stating "one of the last."
In 1933 the US abandoned the Gold standard along with many other nations, such as Italy in '34, Belgium in '35 and others during the 1930s. Switzerland was one of the last countries to drop the gold standard and this was done in 1999 by the approval of a new constitution that eliminated the traditional requirement for the country's currency to be backed by gold.
The gold standard effectively came to an end in 1933 when President Franklin D. Roosevelt outlawed private gold ownership (except for the purposes of jewelery). The Bretton Woods System, enacted in 1946 created a system of fixed exchange rates that allowed governments to sell their gold to the United States treasury at the price of $35/ounce. "The Bretton Woods system ended on August 15, 1971, when President Richard Nixon ended trading of gold at the fixed price of $35/ounce. At that point for the first time in history, formal links between the major world currencies and real commodities were severed". The gold standard has not been used in any major economy since that time.
Response last updated by Terry on Aug 25 2016.
Dec 28 2008, 6:47 PM
queproblema
Answer has 4 votes
queproblema 19 year member
2119 replies
Answer has 4 votes.
So would I.
Many sites give the same information, though.
Apparently Switzerland, as the international banker, was the sole exception to the rule. The Bank for International Settlements was headquartered in Basel after the Treaty of Versailles was signed in 1919, and the "gold franc," based on the Swiss franc, was its standard unit of currency.