Plaza Accord

The Plaza Accord was an agreement reached in 1985 between major countries including the U.S., Japan, and Germany to voluntarily intervene in currency markets. Its goal was to stabilize the U.S. dollar, which had become very strong and made American exports expensive abroad, hurting U.S. industries. By coordinating actions to weaken the dollar, the countries aimed to boost global economic growth and reduce trade imbalances. The accord successfully led to a significant depreciation of the dollar over the following years, influencing international economic relations and currency policies.