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Power balance (lemmy.ca)
submitted 9 months ago by to c/politicalmemes@lemmy.ca
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[–] 3 points 9 months ago (4 children)

I would be skeptical of them "dumping" anything, but they probably would start to slowly diversify their reserves.

Right now there isn't exactly a replacement other than gold, but that's really impractical as a replacement for the bond market.

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  • [–] 3 points 9 months ago (3 children)

    there isn't exactly a replacement other than gold,

    If only there was another currency used by a number of different countries.

    What does France and Germany use? Can England back their pounds on the franc?

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  • [–] 2 points 9 months ago (2 children)

    What does France and Germany use? Can England back their pounds on the franc?

    Are you asking if the EU can use the euro as a reserve currency?

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  • [–] 1 point 9 months ago (1 child)

    I think I am, in the same way America uses its own currency. It's working for them; until this years potential collapse, I mean.

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  • [–] 1 point 9 months ago

    America doesn't use their own currency as a foreign currency reserve. They really don't have much of a need for a foreign currency reserve as they have historically had a relatively stable currency and a lot of partners who are more than willing to trade in USD.

    The US has around 30-40 billion in reserve currency while the EU has somewhere between 300-400 billion.

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