The Bretton Woods Conference was a landmark meeting during World War II where representatives from forty-four Allied nations gathered to establish a new framework for international economic cooperation, resulting in the creation of the International Monetary Fund (IMF) and the World Bank.
A critical adjustment in the value of a country's currency, devaluation can help rectify issues of overvaluation, uncompetitive exports, or an adverse balance of trade, amid the backdrop of a fixed exchange rate system.
A fixed exchange rate is an exchange rate system where the value of a currency is pegged by the government to that of another currency, a basket of currencies, or a measure of value, such as gold. The government maintains this rate through economic policies and interventions in the foreign exchange market.
