Why countries like Indonesia and Vietnam still adopt weak currencies ? Can they just make a new currency and price it 1 to 1Usd?
They can be instantly rich and start buying things.
- A.J.Lv 75 months agoFavorite Answer
The value of anything is no more and no less than people will pay for it. An ounce of gold or barrel of Petroleum are great equalizers. Bitcoin has no government backing at all. It was an experiment of game coin that sold in the real world. A government can try to set a rate but it is only acceptable if it can be traded for something else of value. Currency can be pegged to the dollar
But that then links to the value of goods and services of the country so that the currency is accepted.
They have to buy US dollars for anyone wishing to trade their currency for a US Dollar.
So if Indonesia or Vietnam issue a currency equal to $1 they need to be willing to buy it back in US dollars.
It affects the prices in their country.
- ErikLv 75 months ago
Who would accept it?
- historyLv 75 months ago
If everyone agreed that paper clips were currency.. then paper clips would be currency.