3 ms·
Why can't they get dollars? I was under the impression that you can buy dollars much easier than oil.
by onlyrealcuzzo 4y ago
Why can't they get dollars?
I was under the impression that you can buy dollars much easier than oil.
- bagels 4y agoBuy them with what? The implication is that nobody wants to accept Ghana currency.
- zizee 4y agoTypically exports are used to gather USD. It sounds like Ghana has gold. Presumably people want their gold? They could sell the gold for USD, then use that to purchase the oil. But using the gold for currency does sound like it could be more efficient, cutting out the middleman. Note: normally countries maitain a float of foreign reserves for this, and I'm guessing this stash of economic lubrication has run a business dry for Ghana and they don't have the luxury of rebuilding their reserves, and hoping to use gold as a more immediate solution.
- markdown 4y agoImplication? Only a handful of currencies are accepted in international trade.
- danielschonfeld 4y agoBecause the world has an anemic shortage of dollars. The reason for that is post 2008 banks have become much more risk averse (seeing what happened to Lehman et al) and they are mostly the conduit through which broad currency is generated. That mechanism is mostly broken unless you’re an ultra rich company like Apple or Google. So today to make a bank create USD for you you’d be required to have the best of the best collateral namely sovereign bonds. As it stands the US hasn’t taken even close to enough debt and thus issued Treasuries to even come close to the shortage in dollars that banks’ risk aversion has created since 2008.