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Because of that, the US dollar was strongly appreciated. After that, Bretton Woods system established a system of payments based on the dollar, and all currencies were defined in relation to the dollar. So the US dollar became the main "Reserve currency" and other countries would peg their currencies to the US dollar through buying and selling US dollars (Hill 2007). In doing so, the US dollar took over the role that gold had played under the gold standard in the international financial system and was the only currency that was backed by gold. But recent years, the depreciation of the American dollar against many foreign currencies has drawn a lot of attention around the world...
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