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.
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.