Bretton Woods Agreement

Bretton Woods Agreement: Bretton Woods is a region of Carroll town in New Hampshire, a small US state. United Nations Monetary and Financial Conference held here in 1944 and then signed an agreement with this conference, the resulting system "Bretton Woods System" was named. The Bretton Woods, Mount Washington 45 countries attended the conference held at the hotel. The International Monetary Fund with the agreement signed at the end of this conference (IMF) was accepted as central institution. Agreement established with the system, "Gold Exchange Standard" is also called. Set a fixed exchange rate system "Bretton Woods System" also has created a gold exchange standard. Under this agreement because the US dollar was tied to the US dollar or other currencies. $ 35 With this agreement, equal to 1 ounce of gold was fixed values. Countries with American dollars in the hands of the central banks these dollars through turn into gold in the US. The US Dollar is still in the hands of private individuals in them turn into gold, but in the free market. The aim of Bretton Woods, to bring order to ensure stability of the exchange rate in the face of short-term fluctuations, was to prevent the emergence of devaluation in the exchange rate change. According to the IMF agreement, the system was held accountable for implementing these objectives.