Name: Mahmoud Ahmed Mohamed Eldawy.

Class: 4M
NO.: 21120404

1-dollar 1st use at end of 18th century and 1st time printed in 1861.
2-after 1st world war America became a suitable environment to
European investment and thus had the biggest gold reserve in the world.
3-before end of 2nd world war, all European currencies lost its value and
in contrast dollar was stable and strong.
4- In 1944 America exploit that by setting Bretton woods agreement as a
44 representative from 44 countries to develop a new monetary system
to ensure stability of exchange rate and enhance economic growth.
5-America convinced the world that it is the most powerful in economic
and military aspects so America offered the countries to link their
currencies to dollar and promised to exchange each dollar to gold and
also to never print a dollar if there is not a gold in opposite.
6-dollar become no one main currency for 11 years and exchange rate
become constant.
7-unfortunatly in Vietnam War America printed too much dollars and
there was no gold equal in return.
8-Nixon shock in 1971, America declare termination of Bretton woods
agreement causing dollar to loss its value.
9-in 1973, America convinced Saudi Arabia to link petroleum price to
dollar and in return America will offer military support. (Petro dollar)
10-Saudi Arabia has convinced OPEC to sell petroleum product only with
dollar currency and thus dollar is linked to petrol and become main
currency.