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The US Dollar And International Trade - Nairaland / General - Nairaland

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The US Dollar And International Trade by lawani: 4:25pm On Jan 04, 2016
If there were no United States and no United states dollar, crude oil may be worth far less than what it is worth today and that will be the true worth, maybe 20 dollars per barrel or even less. The use of the US dollars has made certain commodities to be overpriced, when there was no US dollars in the past during the slave trade, traders from Europe will load mannilas and etc from Europe to berth in West Africa, then load slaves and etc in West Africa to berth in the Americas, then sugar in the Americas to berth in Europe, all exchanged by barter, prior to that; Arabs would arrive West Africa with salt and leave with gold, leather and etc to sell in Europe. There was a time salt exchanged for its weight in gold in West Africa, since there was no US dollar to prop up the gold price, later when the industrial revolution started, the export of West Africa to Europe was mainly palm oil, not used for cooking but used to oil machineries and the trade was done by barter, no unit of forex back then. If a Yoruba merchant wants to buy goods in Europe or Hausaland, they had to go to Europe or Hausa land with made in Yoruba land products, accept their money, then use the money to buy their products that is needed in Yoruba land to sell in Yoruba land. He could also act as a middle man, buying British to sell in France at a profit before returning to West Africa.
If the dollar collapses today which may happen anytime, a system of international trade akin to the old system will have to be returned to.

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