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> Necessity will force countries to find USD alternatives. You're misunderstanding the fundamental problem. It's not about a "shortage" of USD for Ghana, where
by pakitan 4y ago
> Necessity will force countries to find USD alternatives.
You're misunderstanding the fundamental problem. It's not about a "shortage" of USD for Ghana, where they ran out of USD suppliers and no one is willing to sell them USD so they will need to switch to RUB.
You get USD by exporting stuff and you can import stuff when you spend USD. The fundamental problem for Ghana is that they need to import valuable stuff but they are running out of valuable stuff to export in exchange, hence their USD reserves are dwindling. You can't solve that problem by changing the currency. If someone is to give you their RUB, they'll still want valuable stuff in exchange.
- throwawaylinux 4y agoThey're running out of valuable stuff ignoring the gold. Most gold producing nations export their gold like any other metal or mineral, don't they?
- pakitan 4y agoI'm not intimately familiar with Ghana's economy. I was just pointing out that this is a trade balance problem not a "we can't get our hands on USD" problem. Maybe they haven't exported gold before and now, by exporting, they'll be able to fill in the gap. Or maybe the gap is so big they'll eventually run out of gold AND USD. Either way, it has nothing to do with the USD status as a reserve currency.