Comment by roflyear
7 days ago
It is not correct that an Asian business doing business with a Italian company first exchanges their currency to USD by selling the US goods then using that USD to complete the transaction.
I agree with you that the current situation in the world really benefits the US and the current policies seem to undermine that.
> It is not correct that an Asian business doing business with a Italian company first exchanges their currency to USD by selling the US goods then using that USD to complete the transaction.
The only way around that is the EUR. Otherwise, most countries have very little connections to one another. Even neighbors will trade with USD and settle in New York.
I think the dollar is around 50% of foreign trade - but anyway I am not arguing against that, I'm saying that it isn't related to trade deficits.