Question

write some points on bretton Woods institution( making of global world)

Answer 1

Dear Student

• The Bretton Woods Agreement was negotiated in July 1944 by delegates from 44 countries at the United Nations Monetary and Financial Conference held in Bretton Woods, New Hampshire. Thus, the name “Bretton Woods Agreement came.
• Bretton Woods System is one of the earlier systems of exchange rate wherein, the monetary authorities of different countries (other than USA) maintained fixed exchange rate among their currencies and the USD (dollar) by intervening in the foreign exchange market.
• Under the Bretton Woods System, gold was the basis for the U.S. dollar, and other currencies were pegged to the U.S. dollar’s value. As with the benefits of all currency pegging regimes, currency pegs are expected to provide currency stabilization for the trade of goods and services as well as financing.
• A collective international currency exchange regime was created by the Bretton Woods Agreement that lasted from the mid-1940s to the early 1970s.
• The Bretton Woods System collapsed in the 1970s but created a lasting impression on international currency exchange and trade through its development of the International Monetary Fund and World Bank.

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