If nations trade with each other and have different currencies how do they use the money if it’s not usable in those places? For example let’s say the US gives China 10 million dollars, but China doesn’t use dollars. What does China do with that money? If it’s converted then what happens to the dollars?
In: Economics
> For example let’s say the US gives China 10 million dollars, but China doesn’t use dollars. What does China do with that money? If it’s converted then what happens to the dollars?
US or China will sell those US dollars for Chinese currency (Yuan). Simple as that.
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