Under the Bretton Woods system, Each country was responsible for maintaining its exchange rate within ±1 percent of the adopted par value by

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Under the Bretton Woods system, countries were required to maintain their exchange rate within ±1 percent of the adopted par value by buying or selling foreign exchanges as necessary. This involved intervening in the foreign exchange market to either buy their own currency (if it was becoming too weak and depreciating too much relative to the par value) or to sell their own currency (if it was becoming too strong and appreciating too much relative to the par value). The idea was to use foreign exchange transactions to maintain the value of a country's currency within the required band around its fixed par value.

Under the Bretton Woods System, Each Country Was Responsible for Maintaining