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It's seldom for a debtor in need to choose the currency. If Greece kept drachma, they'd still need to borrow in euro or dollar as few would have drachmas to loa
by wwosik 9y ago
It's seldom for a debtor in need to choose the currency. If Greece kept drachma, they'd still need to borrow in euro or dollar as few would have drachmas to loan.
US can take loan in dollars because everyone has dollars to park, which is because everyone else has dollars too.
- njarboe 9y agoIn any country with a free exchange of currency there is no problem for investors to get any amount of currency they want. They buy it on the open market. Forex is the biggest and most liquid market in the world. Before the Euro every country in Europe had bonds in their own currency. Interest rates were higher in some due to inflation and default risk, but there was no problem borrowing large sums of money.