- 1825-1906: US begins market operations to maintain the gold standard.
- 1924-1931: US engages in number of market operations, including buying foreign currencies, to maintain the gold standard.
- 1934-1961: US Treasury creates the Exchange Stabilization Fund (ESF), conducts frequent operations directly in foreign exchange markets.
- 1971: Nixon Administration ends USD convertibility to gold, which had become unsustainable due to the large supply of dollars outstanding relative to gold reserves.
- 1973: US conducts intervention against German mark.
- 1974: US conducts intervention against Japanese yen.
- 1976: The USD officially becomes: fiat currency.
- 1977-1979: Very easy monetary policy weakens the USD. US intervenes often to support USD.
- 1979: Fed announces change in its open market procedures to combat inflation and, partly, to support a weakening USD.
- 1980-1981: US intervenes to tame strengthened dollar.
- 1985: Major economies agree in the Plaza Accord to devalue the USD relative to the JPY and DEM. In the following weeks, US intervenes often, selling dollars for other G5 currencies.
- 1987: Major economies sign Louvre Accord to halt USD depreciation. In coordinated interventions, US intervenes often to buy USD.
- 1988 - 1990: US intervenes repeatedly after G7 statement on importance of maintaing exchange rate stability.
- 1990: USD appreciates on a backdrop of solid economic growth and dormant inflation.
- 1991-1992: US and European central banks intervene often against the backdrop of a US recession and weakening USD.
- 1993: US intervenes to buy dollars and sell yen.
- 1994: Fed unexpectedly starts rate hiking cycle on an improving economy following the recession. US intervenes repeatedly to support the USD.
- 1998: US intervenes to purchase yen in a coordinated intervention to support Japan's economy following the Asian financial crisis.
- 2000: Dot-com bubble bursts. leading to recession.
- 2000: Coordinated G7 FX intervention to support the Euro, initiated by the ECB.
- 2001: 9/11 attacks increase overall uncertainty. Fed lowers rates to prop up the economy.
- 2002: Japan intervenes, selling yen for dollars, often supported by the Fed and ECB.
- 2004-2006: Fed tightens policy to curb inflation.
- 2008: Global Financial Crisis ushers in an era of exceptionally easy monetary policy in the US, much of the developed world, and some EMs. Flight to safety strengthens the USD.
- 2010: Euro sovereign debt crisis unfolds.
- 2011: US. UK and European central banks sell yen in a coordinated intervention following a sharp rise In FX volatility as a result of an earthquake in Japan.
- 2011: Standard & Poor's downgrades US sovereign debt; flight to safety nevertheless boosts USD in the months that follow.
- 2014: USD begins to rally on the back of stronger growth relative to other major economies and divergence in DM monetary policy.
- 2015: Fed begins raising rates.
- 2015: China surprises global financial markets by devaluing the renminbi for three consecutive days.
- 2017-2018: USD depreciates on the back of convergence in global growth, President Trump's sentiments for a weaker Dollar, and strength in other major currencies, particularly the euro.
- 2018-2019: USD rallies on tax reform and Fed's continuing tightening cycle.
- 2020: COVID-19 spreads globally; recession begins.
- March 2022: Fed begins raising rates again.
- July 2022: Dollar reaches parity with the euro for the first time since 2002.
Source: Federal Reserve Board, Congressional Research Service, Haver Analytics, various news sources, Goldman Sachs GIR.
Regards, R.Linda! - 1998: US intervenes to purchase yen in a coordinated intervention to support Japan's economy following the Asian financial crisis.
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