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    Current page location: Home > Answers > Which currencies could replace the dollar in international trade as the de facto international currency?
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    Shelly King
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    Which currencies could replace the dollar in international trade as the de facto international currency?

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    • Time:2018-11-15 16:50:42
    Which currencies could replace the dollar in international trade as the de facto international currency?
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    Maria Cullen
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    The reason the US dollar is used is that because of the US trade deficit there are billions of US dollars floating around out there for use in country to country trade that does not go through the US.

    The Euro cannot be used as they have a more or less balanced trade and there are not enough Euros to use. Same for the Yen. Chinese currency is not traded much and they have a trade surplus which means there is little Chinese currency out there.

    Only the US dollar has a sufficient supply to be a lubricant for international trade.

    #1Floor 2018-11-15 17:36:14 Reply(0)
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