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Those are all desirable properties of a currency. What distinguishes any given local currency from a reserve currency?
by thephyber 6y ago
Those are all desirable properties of a currency.
What distinguishes any given local currency from a reserve currency?
- wenc 6y agohttps://en.wikipedia.org/wiki/Reserve_currency https://en.wikipedia.org/wiki/Reserve_currency
- LatteLazy 6y agoThere is no real difference, the reserve currency is just better at those things than a local currency. Reserve currencies exist when your currency or that of your trade partner(s) is not able to do the job. This is why countries with stable currencies and small trade imbalances don't hold much in reserve currencies.