Predominantly two roles: US Dollar Clearing (Correspondent Banking Relationship or CBR as it is known) International Money Transfer to/from the United States. In the first instance, the US Bank that are authorized to provide US Dollar Clearing, act as Correspondent Banks for other financial institutions worldwide for US Dollar Clearing. As the US Dollar is […]
If a person hides money in offshore accounts, how are they able to spend it back in the country without getting caught?
There are two variants here. People who have money in overseas accounts and their home government cannot do anything about it – because it is structured in such a way, that the local government’s taxation arm has no way of imposing collection on it. People who simply have money overseas and hide it, i.e. don’t declare it […]
How do I get Forex account replenished while the central bank of our country makes a huge restriction on foreign currency transfers?
When a country places outgoing or foreign exchange limits, a new market mushrooms literally overnight, one that expects you to pay a premium and can do exactly what the government does not want you to do. There are plenty of people in every economy who would be willing to provide such a netting off service for a […]
Is it possible to create a single international currency that is supported by almost every country, that would become the only currency to be used in International trade? [It would replace the US. Dollar as the international currency.]
Possible? Yes. Will it happen in yours and mine lifetime? Probably not. Currency is a man-made token of exchange medium. The reason we keep having different currencies is because of geography, politics, religion, ideology, natural resources, etc. amongst many other factors. However, the one thing society cannot agree in general is wealth token. It is […]
Can I use USD as cash for ordinary transactions in Venezuela (e.g., taxis, paying for a meal), or do I need to exchange money to get Bolivars?
You can absolutely use US Dollars. They are happily accepted. Most venues will quote you in USD to pay for product/services. With the way things are going int he Venezuelan economy, getting paid in foreign currency is what they would mostly like to get paid in. So, very much accepted everywhere. Don’t even bother changing your money […]
If the petrodollar loses reserve currency status and all major currencies are tied to it, what is most likely to replace it other than cryptocurrency?
There are many ways it could go. Whilst, conventional wisdom would say, the runner-up might take the crown, that might not happen. If one had to wager, one might say that the SDR (Special Drawing Right) could become the currency of choice. The problem is the dominance of the US Dollar is high. In plain […]
Pretty much. National banks are commercial/retail banks (depending on the country) except they are owned or majority owned by the Government. Nothing more, and nothing less. Their product offering is the same as any other commercial banks. It is just that the government has more (or complete ownership) of these banks. Prioritizing them to handle […]
Will many countries choose to abandon the dollar for their reserve currency and use Bitcoin instead?
See this Reference Link. Difficult to say. The fiat currencies we have today, have built-in fault lines within them, when it comes to issuance and usage. The US Dollar certainly is the preferred reserve currency of choice at the moment, but if history has taught us anything, it is that nothing lasts forever. Especially empires. I think […]
No. It is not. The Federal Deposit Insurance Corporation (FDIC) covers deposit insurance as held in the bank up to US$ 250,000 per account. Here is what is covered: FDIC insurance covers all types of deposits received at an insured bank, including deposits in a checking account, negotiable order of withdrawal (NOW) account, savings account, […]