Why did the system of fixed exchange rates eventually become obsolete?

The system of fixed exchange rates became obsolete largely due to the increasing complexity and interdependence of global economies, which made it difficult to maintain fixed rates without significant economic distortions. Additionally, the rise of speculative capital flows and the need for greater monetary policy flexibility led many countries to abandon fixed rates in favor of more adaptable systems. The collapse of the Bretton Woods system in the early 1970s, triggered by inflation and trade imbalances, marked a key turning point towards floating exchange rates. Ultimately, these factors combined to render fixed exchange rates impractical in a rapidly changing economic landscape.