On June 5, 1933, the U.S. Congress abrogated the "gold standard" in Joint Resolution 192, 48 Stat. 112, which formally required that obligations of the United States would be exchanged by the Department of the Treasury by gold or silver coins of the same denomination, and replaced it with the current standard which provides that obligations "shall be discharged upon payment, dollar for dollar, in any coin or currency which at time of payment is legal tender
for public and private debts."
The law, which was affirmed as constitutional by the U.S. Supreme Court in Norman v. Baltimore & O. R. Co., 294 U.S. 240 (U.S. 1935), effectively p
ermits U.S. currency to "float" with the exchange rates of other nations, because the currency is valued whatever someone is willing to pay for it, either in other currency or in goods or service.
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