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Despite its name, the World Bank has not been (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 agreement created the World Bank and the International Monetary Fund (IMF), U.S.-backed organizations, to oversee the new system. The main objective of the conference was to reach an agreement on the IMF. There was sufficient consensus that the conference could also reach agreement on the IRD. To do so, the conference had to be extended from July 19, 1944 to July 22. As part of the final act, the IMF agreement was the most important part of the conference and the subsequent functioning of the world economy. Its main characteristics were that by studying the promotion of an international career in the financial field, specialists learn about the impact 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 rules, set out in the articles of the International Monetary Fund (IMF) and the International Bank for Reconstruction and Development (IBRD), provide for a fixed exchange rate system.
The rules also aimed to promote an open system by requiring members to convert their respective currencies into other currencies and to make free trade. The intent of the SDR system was to prevent nations from buying coupled dollars and selling them at higher market prices and to give nations a reason to hold dollars by crediting interest, while setting a clear limit on the amount of dollars that could be held. The main conflict was that the American role of military defender of the economic system of the capitalist world was recognized, but had no specific monetary value. In fact, other nations have “purchased” U.S. defense policy by imposing a loss of dollars. They were only prepared to do so as long as they supported American military policy, because of the Vietnam War and other unpopular actions, pro-US fighters. Consensus has begun to evaporate. The SDR agreement actually monetized the value of this relationship, but did not create a market for it. 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.
The Bretton Woods system of exchange-bound exchange rates lasted until the early 1970s. 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 agreement did not promote the discipline of the Federal Reserve or the U.S. government. The U.S. Federal Reserve expressed concern about a rise in the domestic unemployment rate due to the depreciation of the dollar.