Events

Bretton Woods
Bretton Woods System of Monetary Management
7/1/1944
7/1/1944
7/22/1944

The Bretton Woods system of monetary management established the rules for commercial and financial relations among the United States, Canada, Western Europe, Australia, and Japan after the 1944 Bretton-Woods Agreement.

More About Bretton Woods

  • Before World War II, the United states had hte largest gold reserves in the world
  • This combined with winning WWII, let the US reconstruct the global monetary system around the dollar

Bretton Woods Outcomes
  • Tied the currencies of almost all countries to the US Dollar
  • Currencies were tied at a fixed exchange rate
  • Tied the value of the US dollar to  $35 per ounce of gold
  • Resulted in the US Dollar becoming the world's primary reserve currency
  • Forced other countries to use and store US dollars for international trade or exchange with the US government for gold