Hi iain140258,
That also doesn't suprise me. Brazil has been trading with Argentina using local currencies for some time now and has even made noises with China for a bilateral trade agreement about using national currencies instead of the US$.
This of course is another possibility for international trade where everybody uses their own currency. Of course there would be needed some sort of mechanism or guarantee that keeps the exchange rates somewhat stable.
i think if we went back to the gold standard, there will be a lot of countries going bust, not just the US, as they would have to have massive deflation to keep in line with their gold reserves. Countries like South Africa and Brazil will become extremely important and countries like the UK will be sent packing if gold was used as a currency guarantor.
Best regards,
Steve
Quote:
Originally Posted by iainl140285
Little by little ... 
http://news.bbc.co.uk/1/hi/business/8136066.stm
China has begun a trial scheme that allows trade with its neighbours to be settled with its own currency, the yuan, also known as the renminbi.
Six Shanghai companies have signed contracts with counterparts in Hong Kong and Indonesia to settle deals in the currency.
It means if the two parties to a trade have yuan available, they need not enter world exchange markets to pay.
Executives said the move would save costs and avert exchange rate risks. |