The Bretton Woods Agreement refers to the framework of the post-war international economic system agreed upon at the United Nations Monetary and Financial Conference held in July 1944 at Bretton Woods, USA. Its main aim was to preserve economic stability and full employment in the industrial world.

The conference established the International Monetary Fund (IMF) to deal with external surpluses and deficits of its member nations. It also set up the International Bank for Reconstruction and Development (popularly known as the World Bank) to finance post-war reconstruction.

This system was based on fixed exchange rates where national currencies were pegged to the US dollar at a fixed rate, and the dollar was anchored to gold at a fixed price.