alt Hacker NewsI thought we were talking about World reserve currency here i.e. international trade.
I agree that you need the currency to be accepted by the state for good local trade support. But that was not the point.
I thought we were talking about World reserve currency here i.e. international trade.
I agree that you need the currency to be accepted by the state for good local trade support. But that was not the point.
> thought we were talking about World reserve currency here i.e. international trade
Yes. If you're a random country, you can use your dollars to buy shit from America. Countries hold reserves for basically two direct reasons: to intervene in FX markes and protect their imports. The latter is the main one. At the end of the day, your ideal reserve composition matches your import portfolio because you want currency you can send to the people who are selling you shit.