In addition, all The Governments participating in Bretton Woods agreed that the monetary chaos of the interwar period had brought several valuable lessons. A devastated Britain had little choice. Two world wars had destroyed the country`s main industries, which paid for the import of half of the country`s food and almost all its raw materials except coal. The British had no choice but to ask for help. It was not until the United States signed an agreement on December 6, 1945, to provide Britain with $4.4 billion in aid, that the British Parliament ratified the Bretton Woods Agreements (which happened later in December 1945).  The Bretton Woods Agreements were signed between the world powers in July 1944 in Bretton Woods, New Hampshire, United States. It had established the International Monetary Fund (IMF) to manage the foreign trade surpluses and deficits of its member countries, and the International Bank for Reconstruction and Development had been established to finance reconstruction. The United States launched the European Economic Recovery Plan (Marshall Plan) to provide substantial financial and economic assistance for the reconstruction of Europe, mainly through grants, not loans. Countries belonging to the Soviet bloc, for example Poland.B, were invited to receive the subsidies, but received a favourable agreement with the Soviet Union`s COMECON.  In a speech at Harvard University on June 5, 1947, U.S. Secretary of State George Marshall stated that the IMF had attempted to provide for occasional and discontinuous adjustments in exchange rates (changes in a member`s nominal value) through an international agreement.
Member States were allowed to adjust their exchange rate by 1%. This tended to restore the balance of their trade by increasing their exports and reducing their imports. This would only be allowed if there is a fundamental imbalance. A decrease in the value of a country`s currency was called a devaluation, while an increase in the value of the country`s currency was called an appreciation. But such payment deficits also meant that over time, deficits would undermine confidence in the dollar, as the reserve currency created instability.  Theoretically, the reserve currency would be the Bancor (a global monetary unit that was never introduced), proposed by John Maynard Keynes; However, the U.S. opposed it and their request was approved, making the U.S. the “reserve currency.”