---
title: "Smithsonian Agreement Definition | Model Diplomat"
description: "The Smithsonian Agreement was a 1971 accord that devalued the US dollar against gold, aimed at stabilizing the Bretton Woods system among G-10 nations."
url: "https://modeldiplomat.com/learn/glossary/smithsonian-agreement"
---

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Model Diplomat Research Team · Last reviewed June 22, 2026

TL;DR

- The Smithsonian Agreement was a December 1971 accord among the Group of Ten nations that devalued the US dollar against gold and realigned major currencies in a failed bid to rescue the Bretton Woods fixed-exchange-ra…
- How did the Smithsonian Agreement change the dollar's value against gold?
- What was the new currency fluctuation band under the agreement?
- Why did the Smithsonian Agreement fail?
- Which countries signed the Smithsonian Agreement?

[Civil Service & Diplomatic Exams](https://modeldiplomat.com/learn/civil-services/glossary)Updated June 22, 2026

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## Timeline

1. 18 December 1971

   The Smithsonian Agreement was concluded on at the Smithsonian Institution in Washington, D.C., by the finance ministers and central bankers of the Group of…

2. 15 August 1971

   It was a direct response to the collapse of confidence in the dollar that followed President Richard Nixon's announcement of (the "Nixon Shock"), which susp…

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Example

In December 1971, US Treasury Secretary John Connally negotiated the Smithsonian Agreement on behalf of President Nixon, devaluing the dollar to $38 per ounce of gold and revaluing the yen and Deutsche Mark upward.

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