The international community is not currently entering the era of abandoning the US dollar and forming a new financial system similar to Bretton Woods. This opinion was expressed on Tuesday by the President of the World Bank (WB), David Malpas, speaking at the Warsaw School of Economics. He was asked if a new period was approaching, similar to the transition to the Bretton Woods system, in connection with the “possible collapse of the current world order” and China’s intentions to “overturn the dollar.”
“Remember what the world was like when the Bretton Woods talks took place in 1944: the whole world was at war at the time, people thought about prospects and said there should be a process and a set of institutions. who can participate in the reconstruction. “It simply came to our notice then. There is no feeling that the world is lost. There is a sense of unity of much of the world in one enterprise – the end of the war in Ukraine. And, therefore, I do not see that we are in the post-dollar world stage “, replied the president of the World Bank.
According to him, “the current world is working quite well in terms of the financial system.” Among the urgent issues, Malpas highlighted the high level of indebtedness of poor countries.
In the summer of 1944, at the initiative of the United States, the United Nations Monetary and Financial Conference was convened. It took place on July 1-22 in Bretton Woods (New Hampshire) with the participation of 730 delegates from 44 states (including the USSR). It has resulted in the signing of agreements on the principles for the formation of exchange rates and the creation of such financial institutions as the International Monetary Fund and the World Bank.
The Bretton Woods system has maintained its status as an international means of payment and unit of account for gold and has introduced two reserve currencies – the US dollar and the pound sterling. However, in fact, the dollar has become the world’s main reserve currency, which has been explained by its stability. As a result, the dollar, as a convertible currency to gold, has become the mainstay of international settlements, foreign exchange and reserve assets. On August 15, 1971, US President Richard Nixon announced a ban on converting the dollar into gold. This move effectively shut down the Bretton Woods monetary system.
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