I imagine the investerors screaming to themselves “Move stock, NOW!”
I don’t truly understand the economic systems, but if it’s like a run on a bank, as seen with Northern Rock in the UK, this will be unrecoverable.
2/3 of global trade is done in US dollars. However a lot of that has currency risk, like say Chinese companies paying their Chinese workers in yuan. So if the dollar looses value compared to other currencies, the old contracts can lead to exporters selling their products for less then they are worth. That is not a good situation to be in for a lot of companies.
In other words Northern Rock would be a joke compared to this.
I imagine the investerors screaming to themselves “Move stock, NOW!” I don’t truly understand the economic systems, but if it’s like a run on a bank, as seen with Northern Rock in the UK, this will be unrecoverable.
2/3 of global trade is done in US dollars. However a lot of that has currency risk, like say Chinese companies paying their Chinese workers in yuan. So if the dollar looses value compared to other currencies, the old contracts can lead to exporters selling their products for less then they are worth. That is not a good situation to be in for a lot of companies.
In other words Northern Rock would be a joke compared to this.