The agreement also created important international organizations such as the World Bank and the International Monetary Fund. The system was dependent and was widely used until the early 1970s. As the Bretton Woods system developed, the reserves of most countries became a mixture of gold and dollars. Over time, the U.S. dollar has become increasingly important. A devastated Britain had little choice. Two world wars had destroyed the country`s main industries, which paid for the import of half of the food and almost all of its raw materials except coal. The British had no choice but to ask for help. It was only when the United States signed a 4.4 billion pound British aid agreement on 6 December 1945 that the British Parliament ratified the Bretton Woods Agreements (which took place later in December 1945).  The Bretton Woods Agreement was the result of a series of negotiations between the Allies towards the end of World War II. In 1944, nations agreed on how to build the world`s financial system after the war. The deal takes its name from Bretton Woods, New Hampshire, where negotiators met to discuss the plan.
The U.S. dollar was the currency with the most purchasing power and was the only currency supported by gold. In addition, all the European nations involved in the Second World War were heavily indebted and transferred large quantities of gold to the United States, which contributed to the domination of the United States. As a result, the U.S. dollar appreciated strongly in the rest of the world and thus became the key currency of the Bretton Woods system. While the Bretton Woods system was agreed in 1944 and the IMF was established in 1945, the system was commissioned in 1958. At that time, the currency conversion was linked to the U.S. dollar, the exchange rate being based on the figure of $35 per ounce of gold worldwide. As Investopedia noted, the system was more permissive than a gold standard, but predictable and non-volatile.
In May 1971, West Germany left the Bretton forest system. Switzerland cashed in $50 million for gold. In early August 1971, France sent a warship into New York Harbor and received US$191 million in gold (Huffington Post). August 11, 1971, the British ambassador asked to cash in $3 billion for gold (1/3 of the U.S. Gold Reserve, Tyler Durden), as President Nixon (copy) announced on August 15, 1971: there was a high degree of convergence among powerful nations that the inability to coordinate exchange rates during the interwar period had exacerbated political tensions. This facilitated the decisions of the Bretton Woods conference. In addition, all the Bretton Woods governments agreed that the monetary chaos of the interwar period had brought some valuable lessons. The Bretton Woods system was that nations could only impose the convertibility of gold on the anchor currency — the U.S.
dollar. The imposition of the convertibility of gold was not necessary, but permitted. Nations could forgo converting dollars into gold and hold dollars instead.