Plaza Accord


Also found in: Wikipedia.

Plaza Accord

Agreement among country representatives in 1985 to implement a coordinated program to weaken the dollar.

Plaza Accord

An agreement between the United States, the United Kingdom, West Germany, the United Kingdom, and Japan in 1985 to gradually devalue the U.S. dollar with respect to other currencies. The countries did this by selling dollars from their foreign currency reserves. In the years leading up to 1985 the dollar had become quite strong and was causing significant current account deficits and was making American exports less competitive globally. As a result of the Plaza Accord, the dollar depreciated more than 50% in an orderly fashion over the following two years. Interestingly, the Plaza Accord was the first major currency agreement involving Japan.
References in periodicals archive ?
Japan adopted "voluntary" caps on some exports to the US and, under the Plaza Accord of late 1985, helped orchestrate yen revaluation relative to the dollar.
If the dollar surges, it is not clear a Plaza Accord II is even possible.
The Plaza Accord coordinated exchange rates among the countries present, in turn depreciating the dollar and restoring some equity to the global market.
Sterling sank 10 per cent in value to its weakest since before the 1985 Plaza Accord on Friday after Britain voted to leave the European Union, triggering a global rush of capital into the traditional security of the yen and the Swiss franc.
However, there are no signs of coordinated central bank intervention to bring down the US dollar, a new twenty first century Plaza Accord.
The question is whether the US and other reserve-currency countries will share the burden of maintaining global currency stability, through an agreement resembling the 1985 Plaza Accord, in which five major economies agreed to depreciate the US dollar against the Japanese yen and the German Deutsche Mark.
Still, there appears to be little prospect of a deal along the lines of the 1985 Plaza Accord, where the governments of the US, UK France, West Germany and Japan agreed to weaken the dollar.
Eleven chapters are: early life; experiences before and during World War II; the Ministry of Finance after JapanAEs defeat in World War II; negotiations with GHQ: the Dodge line and the Shoup tax system; attending the San Francisco Peace Conference; the beginnings of the Kochikai, and the Anpo protests; IkedaAEs visit to America and historic meeting with President Kennedy; the Japan-US textile negotiations; from the Plaza Accord to the collapse of the bubble economy; Miyazawa as Prime Minister; considering twenty-first-century Japan.
The yen's Bretton Woods peg was 360 to the dollar, and its Plaza Accord rate was 270.
With the Plaza Accord signed in 1985, the US un-folded the productivity of US industry and increased industrial exports by keeping the dollar lower than the German mark and Japanese yen.
Their acceptance of Japan's action is reminiscent of the Plaza Accord in 1985, when other major economies acquiesced to depreciation in the US dollar which, like the yen recently, had become significantly overvalued.
22, 1985 -- Japan joins Britain, France, West Germany and the United States in the Plaza Accord aimed at weakening the U.