The London Gold Pool was founded in 1961. Eight nations have collected their gold reserves to defend the $35 an ounce and prevent the price of gold from rising. It worked for a while, but tensions arose. In March 1968, a two-tiered gold market was introduced, with a floating private market and official fixed parity transactions. The two-class system was inherently fragile. The problem of the U.S. deficit has remained in place and has worsened. In the face of growing speculation against the dollar, other central banks were increasingly reluctant to accept the dollar into liquidation; the situation has become untenable. Finally, in August 1971, President Nixon announced that the United States would end the convertibility of the dollar to gold for the central banks of other nations. The Bretton Woods system collapsed and gold was freely traded on world markets. While the Bretton Woods system was agreed in 1944 and the IMF was established in 1945, the system was commissioned in 1958. At that time, the currency conversion was linked to the U.S. dollar, the exchange rate being based on the figure of $35 per ounce of gold worldwide.
As Investopedia noted, the system was more permissive than a gold standard, but predictable and non-volatile. The Bretton Woods Agreement is one of those turning points in the development of modern financial systems, which established the dollar as the standard currency for world trade after World War II. While the Bretton Woods system was demanting during the Nixon administration, the financial institutions created by the Agreement – the International Monetary Fund and the World Bank – remain part of the finances of the 21st century. Under the Bretton Woods system, gold was the basis of the U.S. dollar and other currencies were tied to the value of the U.S. dollar. The Bretton Woods system came to an end in the early 1970s, when President Richard M. Nixon announced that the United States would no longer trade gold for U.S. currency.
In 1971, the problem was so serious that U.S. President Richard Nixon announced that the possibility of converting the dollar to gold was ”temporarily” suspended. The stage was inevitably the last straw for the system and the agreement that sketched it. At the time, the gaps between White and Keynes` plans seemed enormous. White actually wanted a fund to automatically reverse destabilizing financial capital flows. White proposed a new monetary institution called the Stabilization Fund, which ”with a finite pool of national currencies and gold… which would effectively limit the granting of reserve credits. Keynes wanted to encourage the United States, the United Kingdom and the rest of Europe to help with post-World War II reconstruction.  In his closing address to the Bretton Woods Conference on July 22, 1944, Keynes posed the difficulty of creating a system that any nation could accept.