4 ms·

I still don't really get the benefit to this. The price per barrel they pay is going to be calculated in dollars, now it'll just be gold worth that amount of d

by from 4y ago

I still don't really get the benefit to this. The price per barrel they pay is going to be calculated in dollars, now it'll just be gold worth that amount of dollars. If they were sanctioned I would understand but schemes like this almost always result in a bunch of corrupt intermediaries making a lot of money. Recall the Oil for Food scandal, St. Petersburg in the 90s, etc.

ashwagary 4y ago
The value of gold goes up versus the dollar if you create less demand for dollars, right?
stickyricky 4y ago
It makes sense if Ghana doesn't have US dollars and expects to have difficulty acquiring them. Their trade balance with the US isn't stable.
- from 4y ago
  But they would get US dollars from selling gold.
  - ashwagary 4y ago
    Why should Ghana prop up the US dollar? It, like most countries, have no incentive to.
  - yucky 4y ago
    Depends on the buyer.
_8j50 4y ago
How can Ghanna get US Dollars? They can't exchange because who needs Ghanaian currency? You need people with dollars to buy stuff from Ghanna in dollars. Doesn't matter if you have wealth, you only get dollars if outsiders let you. If the US wants the dollar to prevail, it must buy stuff like gold and other items from other countries.