The IMF has attempted to provide for exchange rate adjustments from time to time (a change in the face value of a member) by an international agreement. Member States have been allowed to adjust their exchange rates by 1%. This trend has been to restore the balance of trade by increasing exports and reducing imports. This would only be permissible if there was a fundamental imbalance. A depreciation of a country`s money was described as a devaluation, while an increase in the value of the country`s money was described as an appreciation. The agreement also aimed to remove all forms of exchange restrictions and to create a new efficient payment system for multilateral trade transactions between Member States. The Bretton Woods conference recommended that participating governments agree on reducing barriers to international trade.  The recommendation was then translated into the International Trade Organization(ITO) proposal for the establishment of rules and rules governing international trade. The ITO would have completed the IMF and IBRD.
The ITO Charter was adopted at the UN Conference on Trade and Employment (March 1948 in Havana, Cuba), but the Charter was not ratified by the U.S. Senate. As a result, the ITO was never created. In its place, the less ambitious General Agreement on Tariffs and Trade (GATT) was adopted. However, in 1995, the Uruguay Round GATT negotiations established the World Trade Organization (WTO) as a replacement body for the GATT. The GATT principles and agreements were adopted by the WTO, which was responsible for management and enlargement. The Bretton Woods Agreement was concluded in 1944 at a summit in New Hampshire, USA, on a website of the same name. The agreement was reached by 730 delegates representing the 44 allied nations who participated in the summit.
Delegates, as part of the agreement, use gold standard gold In the simplest terms, the gold standard uses a system to understand the value of the currency, and this means that a currency is compared to how much it is worth in gold and at what price it can be exchanged for gold. to establish a fixed exchange rate. Delegates agreed to create a new international monetary system based on open markets and fixed exchange rates.