4. If a member has not reached an agreement with the Fund within the three-month period covered in paragraph 3 above, the Fund uses the currencies of other members assigned to that member in paragraph 2 (c) to repay the member`s currency that has been allocated to other members. Any currency awarded to a member who has not reached an agreement is used, as far as possible, to exchange currency allocated to members who have entered into agreements with the Fund under 3. There was broad consensus among powerful nations that the lack of exchange rate coordination during the interwar period had exacerbated political tensions. This facilitated the decisions of the Bretton Woods conference. In addition, all the Bretton Woods governments agreed that the monetary chaos of the interwar period had brought some valuable lessons. (iii) At any time prior to the date set at point (i), changes may be made by agreement with the Fund in relation to the face value covered in point a). c) The Fund, in agreement with members, can obtain further information. It serves as a centre for collecting and exchanging information on monetary and financial problems, facilitating the development of studies to help members develop policies to promote the Fund`s objectives.
There is no provision in the agreement for the establishment of international reserves. It expected that a new gold production would suffice. In the event of a structural imbalance, it expected national solutions, such as adjusting monetary value or improving a country`s competitive position by other means. However, the IMF had few resources to promote such national solutions. (i) the 90-day period is extended to end on a date agreed upon between the Fund and the member. Harold James`s elegant essay is the book`s most thoughtful. The Bretton Woods agreement, he writes, was possible because it isolated the monetary settlement of the interminable trade disputes that trade wars lasted for 70 years. The Bretton Woods Agreement of 1944 introduced a new global monetary system. It replaced the gold standard with the U.S. dollar as the global currency. It thus established America as a dominant power in the global economy.
After the agreement was signed, America was the only country with the ability to print dollars. Linked by the agreement, the various nations agreed to maintain a fixed exchange rate with their central banks. These two financial institutions contributed significantly to the faith in the Bretton Woods agreement and, even after the agreement no longer existed, these two institutions were not dissolved. When a member withdraws from the Fund, the Fund`s normal operations are interrupted in its currency and the liquidation of all accounts between the Fund and the Fund is carried out by appropriate agreement between the Fund and the Fund.