During the Vietnam War years the U.S.official reserves transaction balance was negative and U.S.reserve assets declined.With the fixed exchange rate system during those years,the United States was able to run a deficit on current account because

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Foreign countries' central banks accepted the U.S. currency as an international reserve, which allowed the United States to continue running a current account deficit. This was possible because the U.S. dollar was widely accepted as a reliable medium of exchange and a store of value throughout the world.

During the Vietnam War Years the U