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Non 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.
by renonce 3y ago
Non 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 3y agoThis is not true. Eurodollars exist.
- skissane 3y 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