Bretton Wood System1 The IMF and IBRD were formed IMF - Helps in BOP ad exchange rate problems IBRD - Reconstruction and general economic development2. The US Dollar is designated as reserve currency

3. Each currency will fix its par value with dollar and maintain it within 1%

• The US agrees to sell and buy gold at $35/ounce

• In order to keep the currency in the limit of 1% the bank and exchange authorities has to maintain the stock of dollars

• Countries have to pay gold and currency to become member of IMF

25% gold and 75% in member own currency The quota were assigned according to size and

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