Their breakdown is equally frequent. Still they won't learn the lesson and stop doing it. The reason for failure is obvious. If an exchange rate is fixed between two currencies and the market finds it at some stage unrealistic, the market will shift the rate. The market is composed of real traders exchanging currencies as part of the world's commerce.
Dealers adjust prices to ensure that transactions take place.
Its value went up, and the others didn't. Indeed, the pound sterling subsequently went down in value, while others settled somewhere in between. The DM is now the world's strongest currency. There are two reasons. First, the German economic record is particularly good.