Thus, more developed market economies aligned themselves with the U.S. vision of post-war international economic management, which aimed to create and maintain an effective international monetary system and promote the removal of trade barriers and capital flows. In a way, the new international monetary system was a return to a system similar to the pre-war gold standard, using only US dollars as the new world reserve currency until international trade redistributed the world`s gold reserves. The support of money by the gold standard became a serious problem in the late 1960s. In 1971, the problem was so serious that US President Richard Nixon announced that the possibility of converting the dollar into gold would be “temporarily” suspended. This decision was inevitably the straw that broke the camel`s back for the system and the agreement it described. The IMF`s modest credit facilities were clearly not sufficient to deal with Western Europe`s huge balance of payments deficits. The problem was exacerbated by the imf`s re-agreement in the Bretton Woods articles that the IMF could only lend for current account deficits and not for capital and reconstruction purposes. Only the United States contribution of $570 million was actually available for IBRD loans. Moreover, since the only market available for IBRD bonds was the conservative Wall Street banking market, the IBRD was forced to pursue a conservative lending policy that only granted loans when repayment was assured. Faced with these problems, the IMF and the IBRD itself admitted in 1947 that they could not cope with the economic problems of the international monetary system.
 The August shock was followed by US-led efforts to reform the international monetary system. In the autumn of 1971, a series of multilateral and bilateral negotiations were held between the countries of the Group of Ten with a view to reshaping the exchange rate regime. The Bretton Woods Agreements of 1944 established a new global monetary system. It replaced the gold standard with the US dollar as the world currency. In this way, he established America as the dominant power in the global economy. After the agreement was signed, America was the only country capable of printing dollars. The IMF has attempted to provide for occasional and discontinuous exchange rate adjustments (changes in a member`s nominal value) through international agreements.