For example: Why does it matter that a trade happens in USD instead of euro? They all can be made equivalent right?
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Lot’s of people commenting here who have never actually worked in the international trade sector. I spent several years working in factoring, which is a type of international trade financing product. We move the money to match the flow of imports and exports.
The currency of a trade is important because it determines which legal system governs the trade. The contract enforcement system in the United States is very well respected. There are literally centuries of legal precedent, so when a dispute arises (for example, some of the goods that arrived at the port were water damaged), buyers and sellers know it will be handled fairly and consistently. As a result, doing a trade in dollars is perceived as less risky.
Suppose Argentina wanted to purchase oil from Qatar. The business in Argentina would not want to have to use Qatari courts, and the business in Qatar would not want to use Argentinian courts. There is too much risk that courts will be politically influenced and unfair. Instead, Argentina will buy the oil in dollars, and wire the money from an account at the New York City branch of Provincia bank to the New York City branch of the Commercial Bank of Qatar. Any dispute between the two will be heard in the New York courts, which both parties find acceptable.
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