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Without a mandate, the country won't ever quit the dollar (for international trade).
by r00fus 2y ago
Without a mandate, the country won't ever quit the dollar (for international trade).
- JumpCrisscross 2y ago> the country won't ever quit the dollar (for international trade) Legal tender status has almost nothing to do with international settlement. (The dollar isn’t legal tender in most jurisdictions.)
- Aloisius 2y agoThe USD is legal tender in El Salvador though, so...
- JumpCrisscross 2y ago> USD is legal tender in El Salvador though Yes. That isn’t why they have to pay dollars for their imports.
- Aloisius 2y agoSure. You trade in the currency the seller invoices in. Using USD as their currency though does mean there is no possibility of them being invoiced in their own national currency even in cases where it might make sense. Of course, most trade is invoiced in USD regardless.
- JumpCrisscross 2y ago> Using USD as their currency though does mean there is no possibility of them being invoiced in their own national currency even in cases where it might make sense Plenty of countries use the dollar alongside their national currency, formally and informally [1]. Plenty use it without making it legal tender. [1] https://en.wikipedia.org/wiki/United_States_dollar#Countries_that_use_US_dollar https://en.wikipedia.org/wiki/United_States_dollar#Countries...