(Bloomberg) -- All around the world, a backlash is brewing against the hegemony of the US dollar.Most Read from BloombergAmazon Is in Talks to Offer Free Mobile Service to US Prime MembersChina Is Drilling a 10,000-Meter-Deep Hole Into the EarthRich Latin Americans Transform Laid-Back Madrid Into a New MiamiHedge Funds at War for Top Traders Dangle $120 Million PayoutsEverything Apple Plans to Show at WWDC: XR Headset, iOS 17 and MoreBrazil and China recently struck a deal to settle trade in the

(Bloomberg) – All around the world, a backlash is brewing against the hegemony of the US dollar.

  • jaaval@sopuli.xyzEnglish
    2·
    1 year ago

    That’s not really how currencies work. They are not just something arbitrary, they are a thing people trade which has value formed by supply and demand. People buy dollars to be able to buy things that are sold in dollars. Same goes for other currencies.

    What would be the demand for UN currency? What can you buy with it? How would the price be determined?

    The idea that USA somehow hugely benefits from having so much international trade done in dollars is also a bit weak. It does give them some international clout but that’s about it. There are some very complicated things relating to trade balances involved when your currency is the global reserve currency.