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> issue with dollar as international trade currency is that all transactions are performed via US banks Not necessarily. The US dollar is fully convertible and
by raverbashing 4y ago
> issue with dollar as international trade currency is that all transactions are performed via US banks
Not necessarily. The US dollar is fully convertible and several countries offer accounts in USD
(though a lot of places rely happily on SWIFT)
- renonce 4y agoNon US banks have to deposit their dollars to a US bank that actually handles transactions and decides if a transaction can go on or not.
- sgjohnson 4y agoThis is not true. Eurodollars exist.
- skissane 4y agoThere’s nothing stopping a non-US bank having a vault full of actual US currency backing its US-denominated accounts. And settling transactions by sending physical cash on a plane. It is more expensive than using a US bank which makes it much more electronic, but has the advantage that the US government cannot stop it except by shooting down that plane