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The USD is the key currency. If the US prints money it is a different thing than e.g. if Denmark prints it's kroner in terms of financial consequences.
by atoav 4y ago
The USD is the key currency. If the US prints money it is a different thing than e.g. if Denmark prints it's kroner in terms of financial consequences.
- 908B64B197 4y agoNot really. A currency's value is determined by how confident people are that it will hold it's value. It's driven by supply and demand. If country A trades with country B, it'll either get paid or pay with country B's currency. Country A might not be interested in country B's currency, so it can use the US dollar and a US institution as a proxy between the two. But that doesn't do anything to affect the value of the three currencies. It's simply a matter of convenience. What matters is how confident people are of their respective government, laws and institutions compared to the US. Would they prefer to hold assets in the United States or their own country, or country A or B.