The agreement created the World Bank and the International Monetary Fund (IMF), U.S.-backed organizations, to oversee the new system. Despite its name, the World Bank was not (and is not) the central bank of the world. At the time of the Bretton Woods agreement, the World Bank was created to lend to European countries devastated by the Second World War. The World Bank`s focus has changed in lending to economic development projects in emerging countries. The Bretton Woods countries have decided not to give the IMF the power of a global central bank. Instead, they agreed to contribute to a solid pool of national currencies and gold, which would be held by the IMF. Each member country of the Bretton Woods system then had the right to borrow as part of its dues, which it needed. The IMF was also responsible for implementing the Bretton Woods agreement. The Bretton Woods institutions are the World Bank and the International Monetary Fund (IMF). They were created at a meeting of 43 countries in Bretton Woods, New Hampshire, Usa in July 1944. Its aim was to contribute to the reconstruction of the post-war economy and to promote international economic cooperation. The initial Bretton Woods agreement also included plans for an International Trade Organization (ITO), but these were based until the creation of the World Trade Organization (WTO) in the early 1990s.
The Bretton Woods conference had three main outcomes: (1) Article of the IMF`s creation agreement, which aimed to promote exchange rate stability and financial flows. (2) the article of the agreement creating the RCIS, which aimed to accelerate reconstruction after the Second World War and promote economic development, including through loans for infrastructure construction. (3) Other recommendations for international economic cooperation. These agreements and recommendations were included in the final act of the conference. The Bretton Woods Agreement was launched in 1944 at a conference of all allied nations of the Second World War. It took place in Bretton Woods, New Hampshire. As part of the agreement, countries promised that their central banks would maintain fixed exchange rates between their currencies and the dollar. If a country`s monetary value became too low against the dollar, the bank would buy its currency back on the foreign exchange markets. It replaced the gold standard with the U.S. dollar as the global currency. It thus established America as a dominant power in the global economy.
After the agreement was signed, America was the only country with the ability to print dollars. The need for a Post-War Western Economic Order was resolved by the Monetary Order and Trade System Agreements opened at the Bretton Woods Conference in 1944. These have synthesised the British desire for full employment and economic stability and the desire for free trade of the United States.