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A comment on US Administration announces 34% tariffs on China – 20% on EU. Parent comment

Re:US Administration announces 34% tariffs on China – 20% on EU by oblio on Thursday April 03, 2025 @05:00AM (#43566867)
Look up the petrodollar.

If I'm Romanian and my currency is leu (RON) and you're Mexican and your currency is pesos (MXN), you don't want my RON since you can't use it for anything except for imports from Romania and I don't want your MXN since I can only use it for imports from Mexico.

If we both agree on USD, I can go to any other country which wants USD (all of them) and buy whatever I want.

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Re:US Administration announces 34% tariffs on China – 20% on EU by cabirum on Thursday April 03, 2025 @05:18AM (#43567025)
Trading in USD means that all your transactions become known by a third party (US). That is why everyone should be interested in cutting out the middle man.
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Re:US Administration announces 34% tariffs on China – 20% on EU by 8note on Thursday April 03, 2025 @05:24AM (#43567070)
they dont have to be its just more convenient.
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Re:US Administration announces 34% tariffs on China – 20% on EU by oblio on Thursday April 03, 2025 @10:16AM (#43570052)
That's the case for everything except for bartering or using commodities (gold, etc) as intermediate trading mediums.
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