July 1 1944 Bretton Woods Conference
Hotel WashingtonThe United States was committed to establishing a framework for the post- war world that would ensure economic development and stability. In July 1944, it sponsored the U.N. Monetary & Financial Conference in Bretton Woods, New Hampshire. Forty four nations attended the Conference. A plan was agreed upon to establish an International Monetary Fund to help stabilize currencies and promote international trade. The delegates also agreed to the establishment of the International Bank for Reconstruction and Development, which later came to be known as the World Bank..
Both the British and the Americans had been working throughout the war on an economic plan for the post war world. After they discussions between the two they developed a plan and together with other allies published a plan on April 21, 1944 to establish an International Monetary Fund. In May the United States extended an invitation to 44 nations to send representatives to a conference to be held at the Mount Washington Hotel in Bretton Woods New Hampshire from July 1-22 to develop a program to “regulate the international monetary and financial order” in the post war world. Key participants were also invited to pre conference at Atlantic City from June 15- 30th,
The conference established the International Monetary Fund whose purpose was to promote stability of exchange rates. It established the International Bank for Reconstruction and Development. The member nations all pledged to make their currency convertible for trade. According to the agreement countries agreed to allow countries to regulate capital flows. According to the agreement the national currencies would be pegged to gold. If however terms of trade were bad, the countries were allowed to change the exchange rate up to 10%. All countries were required to subscribe to the IMF and the IBRD. Also all countries were encouraged to have open markets.
The following countries attended the conference which went on from July 1-15th. Australia, Belgium, Bolivia, Brazil,Canada,Chile, Republic of China, Columbia , Costa Rica, Cuba, Czechoslovakia, Dominican Republic, Ecuador, Egypt, El Salvador, Ethiopia, France, Greece, Guatemala, Haiti, Honduras, Iceland, India, Iran, Iraq, Liberia, Luxembourg, Mexico, Netherlands, New Zealand, Nicaragua, Norway, Panama, Paraguay, Peru, Philippines,Poland, South Africa, Soviet Union, United Kingdom, United States, Uruguay, Venezuela, Yugoslavia.