The Bretton Woods Agreement: 1944
to 1973
There was an international conference held at Bretton Woods, New
Hampshire, in 1944.
The new international monetary system leads to a fixed exchange rate
system. That is, each currency is fixed in terms of the USD.
And the USD is defined in terms of gold (i.e., one USD is equivalent
to 1/35 ounce of gold).
Countries were committed to keep the parity value of their currencies
within 1 percent of parity by buying and selling their currencies.