How does the price of the dollar affect the economy of foreign countries?
In: Economics
Some commodities are priced in dollars. Oil is a good example. international trading of it is always done in dollars.
So if I live in Europe and agree to buy oil from Saudi Arabia the price will be in USD. If I buy future oil ie: agree to buy 100,000 barrels next December the price will be a set number of dollars. If the value of the dollar goes up, I lose out, if it goes down I gain.
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