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by xref 1195 days ago
Unlucky for the UK coffee shop that wouldn’t take my USD this morning I guess? Not quite sure what you’re trying to say, if a country doesn’t want to accept usd…they don’t have to
4 comments

His point is that fiat currencies are issued by, and backed by, the state and the that trust is, ultimately, based on its enforcement capacity - the police/courts/US army rather than convertibility with gold or other hard asserts.
I think it’s about peace and trust more than anything. It’s not about war and aggression.
Peace and trust are backed in part by an implicit ability to wage/counter war and aggression.
> an implicit ability to wage/counter war and aggression.

In other words, money.

I think he means that the US military has a habit of invading countries who sell oil in currencies other than the US$.

_Libya_

2008 https://www.cfr.org/blog/libya-shunning-dollar (Libya Shunning the Dollar?)

2011 Invaded

_Iraq_

2000 https://www.cnn.com/2000/WORLD/meast/10/30/iraq.un.euro.reut... (U.N. to let Iraq sell oil for euros, not dollars)

2003 invaded

_Syria_

2006 https://www.aljazeera.com/news/2006/2/14/syria-picks-euros-o...

No direct invasion but proxy war (lessons learned).

Thanks… at least someone here understands that "a country" and "some guy with a tiny shop" aren't exactly the same thing!
We're talking about international trade, not an espresso at the corner shop.
Even so. Not every merchant accepts USD.
Except a $100 bill is likely accepted. I’ve been to developing countries that will accept local currency, dollars, and euros. I doubt they would accept any pounds, tethers, or other fake electronic currency.
You won't get anywhere with a $100 bill in many developed countries, outside of some very tourist-y areas maybe. At least not in regular shops, of course you can exchange it at a bank. But if you try to order a coffee with US dollars, you won't get one.
In an increasing number of businesses the UK even if you try and pay in pounds (i.e. cash), they won't accept it. Contactless only!
Doubt. Everyone knows what USD is.
Nah. The "term" USD is common, but that's very different from presenting physical US currency to people and trying to get them to accept it.

At least in Australia, I'd be surprised if more than a single digit percentage of the population would be able to tell if the (US) currency someone presents is real vs pretend/monopoly money.

They'd most likely think the person is trying to scam them.

If I’m visiting a country it’s usually as a tourist. Even on my business trips I spent half the time being a tourist.
Handling a foreign currency is a lot of overhead, you will only find this accepted in locations where it is quite common for people to not have the local currency. If you're in the middle of Europe you'll have a hard time finding a place that will just accept US dollars outside of some very tourist focused destinations. And even there I'm not sure if it'll work.

The places where I've seen this mostly work was near borders, and it makes sense that you'd accept the neighbour currency there even if it is some overhead. If you can quickly hop over the border you're much less likely to exchange currency before than if you plan a full trip in a different country.

Pounds have reasonable acceptance in Africa, the Middle East and parts of Asia -- many of those countries either used to be part of the British Empire or a neighbour, so there's trade, emigration, etc. Probably the Caribbean too, though I haven't been there.

In most cases e.g. a French tourist would be fine taking euros, but a British tourist can take pounds and not pay to convert to dollars or euros first.

Really? Pls back this up with a citation or example. Name one country in those places or outside of Britain for that matter where british pounds are accepted as currency - today and not 1950
I wrote "reasonable acceptance". You can pay for a taxi, a good quality/touristy restaurant or a safari. You can easily exchange sterling for local currency at banks or currency exchange offices.

Kenya and Egypt are two examples.

Entirely depends on country and business in the country.

I've seen Americans try to pay for taxi's in Thailand with USD, the drivers aren't interested, it's a hassle more than anything. In cambodia on the other hand, yes, they'll take it.

Depends entirely on how stable the local currency is, if it's reasonably stable and well managed then probably they won't be interested.

This is hilarious. Do you really think you can pay with USD in any random country?
At least in Australia and the UK, if someone seriously tries paying with US currency they'll be laughed at right out of the shop.

Or at least nicely told to go and exchange it for real money (local currency) somewhere, then come back and try again. :)

I didnt realize the UK and Australia were developing countries but I guess post Brexit changed things.
Good point. Australia isn't, but yeah Brexit has kind of set the direction for the UK. ;)
I am under the impression that pretty much anywhere in the developing world USD will spend. Maybe not in the west, but places that have a weak currency like africa, the middle east, and south america.

Here are a few cherry picked examples

https://www.reuters.com/world/americas/half-payments-caracas...

https://www.tripadvisor.com/ShowTopic-g293974-i368-k4798488-...

https://www.voanews.com/a/lebanon-leans-on-us-dollar-to-cope...

The Turkey example says dollars are not generally accepted, although they are easily changed.
And if there is a bank there you'll be able to convert your currency.
Nope I said developing world like Central and South America. Lots of tourists places will accept Euros and dollars as long as the bills are not damaged.

Mexico, Costa Rica, Panama, Nicaragua, Belize, and Colombia are places where I’ve done this personally and lots of Europeans were doing the same.

Friends and family in Costa Rica even advised that local currency wasn’t necessary and suggested bringing crisp bills from my bank.

Errr, you said "accepted everywhere".

But now that you point out "developing countries", that does seem more likely. :)

Ahhh, you've removed the "everywhere" term now. That should be clearer for people.
Talking pragmatics, what are the chances any random coffee shop in the USA would take your money if all you got were $100 bills?
Aren't they legally required to do so?
If you drink your coffee then pay, then yes, since you are now paying a debt and dollars are legal tender for all debts public and private.

If it's in advance of giving you your coffee, no, they could demand you pay in dogecoin only if they wish.

No; I've been to places that just outright refuse to accept physical cash at all, and I live in America.
At least in big cities in Argentina, you can pay with dollars in many places. Some shops like big supermarkets even have a sign that shows their exchange rate. (Note that the official exchange rate is AR$200, but the unofficial one is AR$400. You may get a bad exchange rate in some shops.) For buying clothes it may be more difficult because you must negotiate the exchange rate, and they may only accept only US$100 bills, and only if they look nice and is the new model that has a big face. It may be more difficult to pay the electricity bill in dollars.

(In small towns it may be more difficult, but not impossible, specially if you are nice.)

As a tourist maybe. But try to do it at any place mostly frequented locals in Europe and you will get nowhere. But funny thing. Same does not only apply to USD, but Euros as well. And EU doesn't even have army. And still on my last trip the taxis took the money.
What developing countries are in the EU?
I think the main disconnect is between developing countries (that may have currency stability issues and where folks are more likely to use dollars or euros) and the developed world, where there is no benefit in using USD for regular transactions. Plus a whiff of "F those Americans who act like they own the whole world".

And your specific comment that started this didn't read like you are only argued about developing world. My 2c.

In most tourists locations yes (at a price, of course). But this is not at all what I was talking about.