Comments by "looseycanon" (@looseycanon) on "It’s Over: The US Dollar Just Broke The Chinese Yuan" video.

  1. Well, it doesn't necessarily need to be more expensive, to use local currencies, under the condition, that there is a lot of bi-directional trade. Say there's a company in Romania that also has a daughter company in Egypt, which produces some semi-product for them and does assembly of final products for non-EU markets. For such a company, trading in RON, EGP or EUR, based on how much income they have in which currency would be benefitial. Say they also export secondary product to Egypt, which is consumed there, then, they'd have competetive advantage, if they accepted Egyptian Pounds and imported something that they need to completely evade conversion. Or they only had income in RON and, then, they would strictly trade withthis daughter company in RON and simply up the ante with each business cycle. Finally, if they traded heavily with the EU, they'd trade in EUR, because that is their primary income currency. The problem with this, is how companies get more and more specialized, there is less space for such trade constructs.
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