-The United States and 28 other governments signed the International Monetary Fund Agreement and the International Bank for Reconstruction and Development Agreement. During World War II, the British economy was severely damaged, and the traditional capitalist world monetary system centered on the pound was difficult to maintain. Western European countries, once the leading force in international politics and economy, have also become second-and third-class countries. While Europe and Japan are busy cleaning up the ruins of war, the economic influence of the United States is increasing day by day. The United States has gradually become the largest creditor country and the strongest country in the capitalist world. Therefore, it is urgent to establish a world monetary system centered on the US dollar in order to consolidate its hegemonic position. So in July 1944, the United States invited representatives from 44 countries to hold the "United Nations Monetary and Financial Conference" in Bretton Woods, New Hampshire (known as the Bretton Woods Conference in history). After fierce debate, the United States, with its political and economic strength, finally forced the participating countries to accept the plan put forward by the United States and adopted the International Monetary Fund Agreement (Bretton Woods Agreement). The General Assembly also decided to establish two institutions, namely, the International Bank for Reconstruction and Development (World Bank) and the International Monetary Fund, and a global trade organization. Based on the agreement adopted at this meeting, a capitalist world monetary system centered on the US dollar was formed, which is the "Bretton Woods system".

The Bretton Woods system is mainly embodied in two aspects: first, the dollar is directly linked to gold. Second, the currencies of other member countries are pegged to the US dollar, that is, they maintain a fixed exchange rate relationship with the US dollar. The Bretton Woods system is actually an international fund exchange standard, also known as the dollar-gold standard. It made the US dollar in the center of the post-war international monetary system, and the US dollar became the "equivalent" of gold. Only through the US dollar can the currencies of various countries have a relationship with gold. Since then, the dollar has become the means of payment for international settlement and the main reserve currency of various countries.