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The currency actually used to make the payment makes very little difference as long as the underlying currency to value the trade is the dollar.

"To value" here must mean to price such that USD is a unit of measurement to express transaction value of any commodity Q ("trade") which is not the use-value or production cost of or demand for the commodity Q. USD is the price of the currency of settlement. USD still dominates currencies of settlement in part because of FRB glut policies. However, if USD is not the currency of settlement, the transaction event yields ForEx profit (loss).

Elsewhere Chris is promoting a unit of measurement other than currency to express transaction value as well as demand for commodity Q, e.g. work, kWh.

Where did Jerome comment, "it doesn't matter what currency oil prices are denominated in"?

Diversity is the key to economic and political evolution.

by Cat on Wed Oct 7th, 2009 at 08:19:21 AM EST
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