The representatives at Bretton Woods touched a contract that identified as the Bretton Woods Contract to find a postwar global fiscal method of exchangeable currencies, immovable exchange rates and open trade. This contract formed among two intercontinental institutes: the International Bank for Reconstruction and Development (the World Bank) and the International Monetary Fund (IMF) to enable these objects in order to deliver fiscal assistance for modernization of postwar Europe. The World Bank gave the first loan of $250 million to France in 1947. It was the World Bank’s first act.
The currencies of partaking states could be transformed into the US dollar at an immovable rate and overseas principal banks could transform the US dollar into gold at an immovable rate in the Bretton Woods Exchange System. In the other side, the US dollar substituted then central British Pound and the equalities of the world’s foremost currencies were pegged in contradiction of the US dollar. The Bretton Woods Contract was also designed at averting currency rivalry and stimulating fiscal co-operation amongst states. The IMF participant countries approved to a method of interchange rates that could be attuned within well-defined equalities with the US dollar or transformed to accurate a central imbalance in the equilibrium of expenditures with the contract of the IMF. From 1946 till the first 1970s, each worth method continued in use that time.
