The Bretton Woods system was implemented as a more stable substitute for the gold standard, according to which all currencies were convertible into gold. According to the new agreement, the dollar was the norm for international transactions, the value of which was set at 1/35 of an ounce of gold. The fact that the United States held a large part of the world`s gold reserves allowed the dollar to assume its new role as the standard currency on which stock markets were based. Powerful nations largely agreed that the lack of exchange rate coordination in the interwar period had exacerbated political tensions. This facilitated the decisions of the Bretton Woods conference. Moreover, all the Bretton Woods participating Governments agreed that the monetary chaos of the interwar period had brought several valuable lessons. The United States launched the European Economic Recovery Plan (Marshall Plan) to provide significant financial and economic assistance for the reconstruction of Europe, mainly through grants, not loans. Countries that are part of the Soviet bloc, for example. B Poland, were invited to receive the subsidies, but obtained a favourable agreement with the COMECON of the Soviet Union.
 In a speech at Harvard University on June 5, 1947, U.S. Secretary of State George Marshall stated that financial crises during the term of U.S. President Richard Nixon led to the end of the Bretton Woods system. During these years, the amount of dollars held abroad exceeded the value of gold reserves held by the United States, at Fort Knox and elsewhere. This undermined the premise of the deal, which is that the US could still get its dollars back with its gold counter-value. The agreement does not provide for the creation of international reserves. She thought that a new production of gold would be enough. In the event of structural imbalances, it expected national solutions, such as an adjustment in monetary value or an improvement in a country`s competitive position by other means. However, the IMF has had little capacity to promote such domestic solutions.
On December 17 and 18, 1971, the Group of Ten, which met at the Smithsonian Institution in Washington, D.C., created the Smithsonian Agreement that devalued the dollar at $38/ounce with trade bands of 2.25% and attempted to balance the global financial system with SDRs alone. It failed to impose discipline on the US government, and in the absence of another credibility mechanism, the pressure on the gold dollar continued. 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. 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 providing lending to economic development projects in emerging countries. The Bretton Woods planners established a system of rules, institutions and procedures to regulate the international monetary system and created the International Bank for Reconstruction and Development (IBRD) (now one of the five institutions of the World Bank Group) and the International Monetary Fund (IMF). These organizations began their work in 1946, after a sufficient number of countries had ratified the agreement. The intention of the SDR was to prevent nations from buying committed dollars and selling them at the higher free market price, 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 role of the United States as the military defender of the world capitalist system was recognized, but not endowed with any monetary value. In fact, other nations have “bought” U.S. defense policy by making a loss by holding dollars.