Does the USA have contingency plans if say countries such as China decide to deal only in euros?
Would it be too far-fetched to consider the possibility that say, China bowing to the demands of its the business sector, claiming that its profit margins are affected by the weak US dollar, would prefer to be paid in euros and other countries would follow suit? I can only imagine such a scenario would further weaken the US economy. Is the US prepared for it?
Rarely does money change hands in large business transactions. They are handled by bank transactions in money value. Therefore it does not matter what the "name" of the money is so long as the value is determined and agreed upon.
As the value of the US money is based on stock market value and goods exchanged (trade debt and income) Changing the China money would only affect the little people till they cashed in on the new unit of money.
Same thing that happen in Europe for the Euro.
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Filed under: Business Contingency Planning
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China has Internet only Chinese computers can use,as well as this one .make more money that way,euro never be as good as U.S.$ on monetary exchanges
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I work in America on the condition that I get paid in euros, not dollars.
I used to get paid in dollars and the value of my paycheck would drop 1 or 2 percent by the time I could even cash the check.
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I dont see why it’s a problem. All we have to do is use the current exchange rate and exchange dollars for euros to pay them. All the transactions are pretty much using electronic wire transfers anyway, so I dont think it would be a problem. Annoying, yes. But certainly not crippling to the economy.
Now if they decided to only trade with European countries and not purchase or sell goods to the US, that would be a completely different story.
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Rarely does money change hands in large business transactions. They are handled by bank transactions in money value. Therefore it does not matter what the "name" of the money is so long as the value is determined and agreed upon.
As the value of the US money is based on stock market value and goods exchanged (trade debt and income) Changing the China money would only affect the little people till they cashed in on the new unit of money.
Same thing that happen in Europe for the Euro.
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Yes… We use U.S. Dollars here and we will spend them on whoever excepts them. If China decides it will only accept Euors, then I am sure Mexico, Korea, India, and all of South America will be happy to gain our business.
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