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Because the US dollar is the reserve currency of the world. This won't work if you're an isolated economy with a barely traded currency.
by kilroy123 4y ago
Because the US dollar is the reserve currency of the world. This won't work if you're an isolated economy with a barely traded currency.
- jollyllama 4y agoSounds like "policy tricks."
- Rury 4y agoSome people argue if the US were to lose its reserve currency status, this is likely how it would start. Nations doing QE, against a tightening dollar, and starting to seek doing international trade in currencies other than dollars. Russia is doing this now. China is also seeking to do the same with Saudi Arabia (https://markets.businessinsider.com/news/commodities/dollar-dominance-dedollarization-china-saudi-arabia-oil-deal-crude-price-2022-12 https://markets.businessinsider.com/news/commodities/dollar-...).