The fall of the Bretton Woods system was inevitable due to trade imbalances that ballooned in the 1960s. The U.S. Dollar was pegged to an artificially high value and the French central bank was right to arbitrage it by withdrawing specie. Simply resetting all the exchange rates was not sufficient, especially since the Federal Reserve under Nixon continued inflating the currency. The need to have variable rates was decades in the making.
The fall of the Bretton Woods system was inevitable due to trade imbalances that ballooned in the 1960s. The U.S. Dollar was pegged to an artificially high value and the French central bank was right to arbitrage it by withdrawing specie. Simply resetting all the exchange rates was not sufficient, especially since the Federal Reserve under Nixon continued inflating the currency. The need to have variable rates was decades in the making.