Maintaining fixed exchange rates became increasingly difficult, leading to the collapse of the system when the U.S. suspended the dollar’s convertibility into gold in 1971.

A drawback of fixed rates is that governments and central banks often have to work against market forces to maintain a currency peg (the policy a country uses to set a fixed exchange rate).

With an exchange rate near 89,000 LBP per 1 USD, the Lebanese pound remains the weakest in the world. Lebanon’s financial collapse, political dysfunction, and runaway inflation have destroyed ...