Louvre Accord

The Louvre Accord was signed by the then G6 (France, West Germany, Japan, Canada, the United States and the United Kingdom) on February 22, 1987 in Paris, France. Italy had been an invited member, but declined to finalize the agreement. The goal of the Louvre Accord was to stabilize the international currency markets and halt the continued decline of the US Dollar caused by the Plaza Accord (of which a primary aim was depreciation of the US dollar in relation to the Japanese yen and German Deutsche Mark).

The Louvre Accord aimed to improve the stability of foreign exchange by the mutual agreement of the G7 Minister of Finance meeting (i.e. a conference of ministers of the "group of seven") that had been held in Louvre in Paris in 1987. Since the Plaza accord, the dollar rate had continued to slide, reaching an exchange rate of ¥150 per US in 1987. The ministers of the G7 nations gathered at the Louvre in Paris to "put the brakes" on this decline. It was assumed that a lower dollar valuation might stall economic growth world-wide. The monetary authorities of the G7 ministers agreed to cooperate to stabilize exchange rates.