Under the Bretton Woods system,if a country developed a permanent deficit in its balance of trade,it would require the International Monetary Fund to agree to a currency devaluation.

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Under the Bretton Woods system, countries were required to maintain a fixed exchange rate with the US dollar and were only allowed to adjust their currency value with the approval of the International Monetary Fund (IMF). If a country developed a permanent deficit in its balance of trade, it would lead to a depletion of its foreign reserves, and to adjust the balance of payments, the IMF could agree to a currency devaluation. This could help boost exports and reduce imports, leading to an improvement in the current account balance.

Under the Bretton Woods System,if a Country Developed a Permanent