Hello Penners,

As I understand it, the US requires foreign countries that hold US dollars
as reserve currency to do so by purchasing and holding US T-bills (thus
contributing to the US's ability to maintain its current account deficit). I
recall reading somewhere that as early as the 1950s Congress wrote this into
law, that US foreign reserve dollars must be held in the the form of
T-bills.

If this is correct, is the US unique in this regard, or do other currencies
have similar requirements as to how their currencies are held by foreign
states?

Any light you could shine my way is appreciated.

Jayson

Jayson J Funke (ABD)
Graduate School of Geography
Clark University
950 Main Street
Worcester, MA 01603


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