Assignment:
Gold was demonetized as an international reserve asset
The formation of the two tier gold system was a remedy that could only delay the inevitable collapse of the gold exchange standard. By 1971, The U.S stock of monetary gold has declined to $11 billion, only a fraction of U.S dollar liabilities to foreign central banks. The U.S balance of payments position was also deteriorating. The closing of the gold window to foreign official holders brought an end to the gold exchange standard, and the last functional link between the dollar and monetary gold was severed. It took several years for the world's monetary authorities to formalize the demonetization of gold as an international reserve asset.