The Bretton Woods Agreements were signed between the world powers in July 1944 in Bretton Woods, New Hampshire, United States. It had established the International Monetary Fund (IMF) to manage the foreign trade surpluses and deficits of its member countries, and the International Bank for Reconstruction and Development had been established to finance reconstruction. 730 delegates from the 44 Allied countries ready to rebuild the international economic system while World War II was still raging and gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire, USA, for the United Nations Monetary and Financial Conference, also known as the Bretton Woods Conference. Delegates discussed from 1 to 22 July 1944 and signed the Bretton Woods Agreement on the last day. With the establishment of a system of rules, institutions and procedures to regulate the international monetary system, the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD) were created, which is now part of the World Bank Group. The United States, which controlled two-thirds of the world`s gold, insisted that the Bretton Woods system be based on both gold and the U.S. dollar. Soviet representatives attended the conference, but later refused to ratify the final agreements, denying that the institutions they created were “branches of Wall Street.” [2] These organizations began their work in 1945 after a sufficient number of countries had ratified the Convention. The Bretton Woods Agreement was created in 1944 at a conference of all allied nations of World War II. It took place in Bretton Woods, New Hampshire. Under the agreement, countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar. It was at that conference that the Bretton Woods Agreement was adopted.

Under this agreement, the IMF and the International Bank for Reconstruction and Development (IBRD) are known as the World Bank. On August 15, 1971, the United States unilaterally ended the convertibility of the U.S. dollar into gold, thus ending the Bretton Woods system and turning the dollar into fiat currency. [3] This action, called the Nixon shock, created the situation in which the US dollar became a reserve currency used by many states. At the same time, many fixed currencies (such as the pound sterling) also began to fluctuate freely. •  The conference established the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (World Bank). Answer: The Bretton Woods system of monetary administration established the rules for trade and financial relations between the United States, Canada, Western Europe, Australia and Japan in the mid-20th century. The Bretton Woods system was the first example of a fully negotiated monetary order that would govern monetary relations between independent nation-states.

The main features of the Bretton Woods system were the obligation for each country to pursue appropriate policies that maintained the exchange rate (± 1 per cent) by tying its currency to gold, and the IMF`s ability to bridge temporary balances of payments. .