I don't know the law, but it's clearly in the creditors' interest to hold T-bills rather than cash, since T-bills pay interest.
On Tue, Jul 21, 2009 at 2:03 PM, Jayson Funke<[email protected]> wrote: > 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 > > > _______________________________________________ > pen-l mailing list > [email protected] > https://lists.csuchico.edu/mailman/listinfo/pen-l > -- Jim Devine / "And when California slides into the ocean, as the mystics and statistics say it will, I predict this hotel will be standing until I've paid my bill." -- Warren Zevon [paraphrased]. _______________________________________________ pen-l mailing list [email protected] https://lists.csuchico.edu/mailman/listinfo/pen-l
