In order to ensure economic stability and political peace, states have agreed to cooperate to accurately regulate the production of their currencies, maintain fixed exchange rates between countries and facilitate international trade more easily. This was the basis of the post-war American vision of global free trade, which included reducing tariffs and, among other things, maintaining a trade balance on fixed exchange rates, which would be favourable to the capitalist system. The IMF has attempted to provide for exchange rate adjustments from time to time (a change in the face value of a member) by an international agreement. Member States have been allowed to adjust their exchange rates by 1%. This trend has been to restore the balance of trade by increasing exports and reducing imports. This would only be permissible if there was a fundamental imbalance. A depreciation of a country`s money was described as a devaluation, while an increase in the value of the country`s money was described as an appreciation. Discontent with the political impact of the dollar system was exacerbated by the détente between the United States and the Soviet Union. The military threat of the Soviet Union had been an important force in the consolidation of the U.S.-led monetary system. The political and security umbrella of the United States helped make American economic dominance tasty for Europe and Japan, which was economically exhausted by the war. As gross domestic production increased in European countries, trade increased. As security tensions eased, transatlantic dependence on defence eased and led to latent economic tensions.
The dollar was the cash in the system, that is, it was the standard to which all other currencies were linked. As a result, the United States did not have the power to set the exchange rate between the dollar and another currency. In March 2010, Greek Prime Minister Papandreou wrote in a statement in the International Herald Tribune: “Democratic governments around the world must create a new global financial architecture, as bold as Bretton Woods, as bold as the creation of the European Community and the European Monetary Union. And we need that quickly. In interviews that coincide with his meeting with President Obama, he suggested that at the upcoming G20 meetings in June and November 2010, Obama would raise the issue of new regulations in international financial markets.