Aug
05

Dependable Dollar

Money1A cornerstone of international trade is nations that run trade surpluses can be confident that the money they acquire by running trade surpluses, almost always US dollars, will hold its purchasing power over time. If there is a move away from a dollar-based system to Argentinian Pesos, Russian Rubles or Chinese Yuan, trade will weaken as creditor nations will refuse to hold large quantities of such questionable foreign currencies.

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