Right but what the usa will do with those euros ??
Topic: Currencies and forex now demand and reason to use it interesting (Read 68 times)
Each country, in addition to buying the necessary goods from other countries, has its own gold and foreign exchange reserves. After all, they must ensure the stability of the national currency. If a country's currency is weak, you can sell that currency and appreciate your own currency. There are many options for using foreign currency. A lot still depends on the government, because they decide what to spend money.
Usa is weapons producer one of the biggest.
Europe want to buy from usaeurope need to buy dollars first ? But what the usa will do it with so much euros ?
Euro dont export that much that some country will euro currency from usa ?
Europe want to buy from usaeurope need to buy dollars first ? But what the usa will do it with so much euros ?
Euro dont export that much that some country will euro currency from usa ?
Why don't you spend 5 seconds searching with google rather asking yourself stupid questions?
Quote
The EU is one of America’s largest trading partners, accounting for $658 billion worth of goods trade in 2020. While the U.S. exported $237.9 billion worth of goods from the EU, imports from the EU. amounted to $420.1 billion, making the trade deficit $182.1 billion, the highest ever on record, according to the U.S. Census Bureau
The US has a trade deficit with the EU, not the other way around, so now, even if trade would work the way your;e picturing with companies buying and stockpiling it before doing trade, the US will not have an excedent of Euros. Furthermore, none of the EU countries are in the top 10 destinations for US weapons, and all of the major countries in Europe are also weapons exporters of their own.
The eurozone and US do a lot of trading with each other.
Most of the weapons imports to Europe are forced by the US but there are still large weapons producers in a lot of European countries (afaik 4 of the 10 largest aircraft producers are in Europe too - and countries like France actively competing with the US for weapon production).
Most offices for US companies also have bases in the UK/The Netherlands so it might be less likely those assets are actually bought with dollars, profits might be converted to dollars but there'd be no reason to not use the euro to get the raw materials.
The fed have 10 year bonds paying 2.3% while the eurozone have 10 year bonds paying 0.5%, one of them is definitely looking like they need more money atm.
Most of the weapons imports to Europe are forced by the US but there are still large weapons producers in a lot of European countries (afaik 4 of the 10 largest aircraft producers are in Europe too - and countries like France actively competing with the US for weapon production).
Most offices for US companies also have bases in the UK/The Netherlands so it might be less likely those assets are actually bought with dollars, profits might be converted to dollars but there'd be no reason to not use the euro to get the raw materials.
The fed have 10 year bonds paying 2.3% while the eurozone have 10 year bonds paying 0.5%, one of them is definitely looking like they need more money atm.
Usa is weapons producer one of the biggest.
Europe want to buy from usaeurope need to buy dollars first ? But what the usa will do it with so much euros ?
Euro dont export that much that some country will euro currency from usa ? Where the usa will put so many euros ? Will the usa will establish more banks in europe and maybe start lending money in europe as from sales of weapons and military defence equpment the usa will have now a lot euro currency
Europe want to buy from usaeurope need to buy dollars first ? But what the usa will do it with so much euros ?
Euro dont export that much that some country will euro currency from usa ? Where the usa will put so many euros ? Will the usa will establish more banks in europe and maybe start lending money in europe as from sales of weapons and military defence equpment the usa will have now a lot euro currency
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