Bretton Woods system 1945-1972 o Under the bretton woods system, the u.S. dollar was pegged to gold at $35 per ounce and other currencies were pegged to the u.s. dollar o Each country was responsible for maintaining its exchange rate within t1% of the adopted par value by buying or selling foreign reserves as necessa o The bretton Woods system was a dollar-based gold exchange standard McGraw-Hilylrwoin 2-10 Copyright@ 2001 by The McGraw-Hill Companies, Inc. All rightsMcGraw-Hill/Irwin Copyright © 2001 by The McGraw-Hill Companies, Inc. All rights reserved. 2-10 Bretton Woods System: 1945-1972 ⚫ Under the Bretton Woods system, the U.S. dollar was pegged to gold at $35 per ounce and other currencies were pegged to the U.S. dollar. ⚫ Each country was responsible for maintaining its exchange rate within ±1% of the adopted par value by buying or selling foreign reserves as necessary. ⚫ The Bretton Woods system was a dollar-based gold exchange standard