ABSTRACT
US dominance reached its peak with the restoration of the Shah in Iran in 1954. Balance-of-Payments Deficit fall in the trade balance further aggravated the US balance-of-payments deficit. One important outcome of the US balance-of-payments deficits was a major redistribution of international reserves. The country's large trade surplus in that period was insufficient to finance both US military expenditures and investments abroad. The large and persistent US balance-of-payments deficits brought an ever-increasing flow of dollars into the treasuries and central banks of foreign governments. The provisions of the International Energy Agency (IEA) agreement also put the oil companies in a position of forcing the other governments to back them. The US uses the IEA as means of both halting the general erosion of its international position and of regaining control over energy resources. The United States pledged to sell its gold to all governments and central banks of countries who were members of the IMF at that rate.
