Exchange rates would be fixed, as under the gold standard, but now the anchor - the international reserve currency - would be the dollar rather than gold {though the dollar itself would notionally remain convertible into gold, vast quantities of which sat, immobile but totemic, in Fort Knox}.
The text discusses a shift in the international monetary system where exchange rates would be established on a fixed basis similar to the gold standard. However, instead of gold, the U.S. dollar would serve as the primary reserve currency. This change reflects the evolution of global finance, positioning the dollar as the cornerstone of international trade and finance.
Although the dollar would still be theoretically convertible to gold, the abundance of gold stored in Fort Knox symbolizes its diminishing role as a direct currency in international transactions. The focus has shifted from gold itself to the dollar's stability and acceptance worldwide.
