The Bretton Woods Agreement was concluded in 1944 at a summit in New Hampshire, USA, on a website of the same name. The agreement was reached by 730 delegates representing the 44 allied nations who participated in the summit. Delegates, as part of the agreement, use gold standard gold In the simplest terms, the gold standard uses a system to understand the value of the currency, and this means that a currency is compared to how much it is worth in gold and at what price it can be exchanged for gold. to establish a fixed exchange rate. THE financial crises of US President Richard Nixon led to the end of the Bretton Woods system. During these years, the foreign dollar exceeded the value of U.S. gold reserves at Fort Knox and elsewhere. This undermined the premise of the agreement, namely that the United States could still support its dollars with its gold equivalent. At the end of the war, the Bretton Woods Conference was the culmination of about two and a half years of planning for post-war reconstruction by the Treasuries of the United States and the United Kingdom.
American officials studied with their British colleagues the reconstruction of what had been lacking between the two world wars: an international payments system that would allow nations to act without fear of sudden currency devaluations or sharp exchange rate fluctuations – diseases that had almost paralyzed global capitalism during the Great Depression. This useful collection of basic documents and essays marks the 75th anniversary of the Bretton Woods Agreement of July 20, 1944. The Bretton Woods system is mainly identified by the monetary agreement that established the International Monetary Fund (IMF) to help countries maintain fixed exchange rates. In fact, the IMF was part of a group of interdependent institutions, including the International Bank for Reconstruction and Development (IBRD), the precursor to the World Bank, and, three years later, the General Agreement on Tariffs and Trade, a precursor to the World Trade Organization, much later. In early 1945, Bernard Baruch described the spirit of Bretton Woods as follows: „If we can put an end to labour subsidies and southerly competition in export markets“ and prevent the reconstruction of war machines, „… Oh, my boy, my boy, what long-term prosperity we`re going to have.  The United States therefore uses its position of influence to reopen and control the [rules] of the global economy, in order to allow unfettered access to markets and materials of all nations. As they study to boost an international career in finance, experts learn about the effects of international agreements such as Bretton Woods and the institutions they have created. Developing a strong international financial strategy means anticipating the impact of central bank announcements and actions, managed in the same way by national governments and international bodies. The Bretton Woods system was put in place as a more stable replacement for the gold standard under which all currencies were converted to gold. Under the new agreement, the dollar was the standard for international transactions, which were valued at one ounce of gold. The fact that the United States held a large portion of the world`s gold reserves allowed the dollar to play its new role as a standard currency on which the stock markets were based. The Bretton Woods Agreement is one of those turning points in the development of modern financial systems, which established the dollar as the standard currency for world trade after World War II.
While the Bretton Woods system was demanting during the Nixon administration, the financial institutions created by the Agreement – the International Monetary Fund and the World Bank – remain part of the finances of the 21st century.