How does the seller selling the kebabs in riyal get the chicken given they only earn riyal? You need somebody who wants riyal for dollars. Why would the chicke

How does the seller selling the kebabs in riyal get the chicken given they only earn riyal? You need somebody who wants riyal for dollars. Why would the chicken seller not take the riyal since that helps his customers and do the FX magic themselves? "Local currency sales" is what marketing men recommend. It's just the latest form of vendor financing. Who wants riyal for dollars. People who buy kebabs in Saudi. Those who live and work there. As I said the dollars are useless in Saudi, because that's not the local currency stuff you need day to day is priced in. The point again is that in aggregate you can buy things in the currency you have and you can sell things for the currency you want. The financial system smooths the path to that deal - for a price. As anybody with a Paypal account and who trades internationally understands.