At its meeting in December 1971 at the Smithsonian Institution in Washington D.C. The Group of Ten signed the Smithsonian Agreement. The United States has committed to committing the dollar to $38/ounce with 2.25% bargaining margin, and other countries have agreed to revalue their currencies against the dollar. The group also planned to compensate the global financial system only with special drawing rights. Since the starting point for calculating the deduction value is the selling price in the country of import, various deductions are necessary to reduce this price to the corresponding customs value: the commissions normally paid or agreed, the sum of profits and general expenses added to sales must also be deducted; the usual transport costs and the corresponding insurance must be deducted from the price of goods when these costs are normally borne within the country of import; tariffs and other national taxes due in the country of import due to the import or sale of goods must also be deducted; Value added by assembly or processing, if any. 4. The Fund approves or challenges a proposed face value within a reasonable period of time after receiving the proposal. A proposed face value does not come into effect for the purposes of this agreement if the Fund opposes it and the member is subject to 3 above. Due to national social or political policy, the Fund did not object if the member proposes face value. In 1944, in Bretton Woods, following the collective conventional wisdom of the time, representatives of all leading allied nations collectively supported a regulated fixed exchange rate system, indirectly disciplined by a gold-related dollar – a system based on a regulated market economy, with strict controls on money values. International speculative financing flows have been held back by the passage and limitation by central banks.
This meant that international investment flows were invested in foreign direct investment (FDI) – that is, the construction of factories abroad instead of international currency manipulations or bond markets.