OK guys, sorry for being dumb, but please can someone explain to me how currency exchange works between states?
I mean, let's take USA and Russia, my home country. How does the Russian central bank get USD exactly? I just can't grasp that. Does it get $ in taxes somehow, e.g. from oil trade?
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>>1340801
What do you mean where do they get it?
I'd imagine they just exchange their rubles for usd. I'm sure any big bank or finance company could easily get them tons of it.
>>1340805
OK I have little idea if "central bank" is the right term, I mean where does the state economy get dollars from?
I mean, do they simply sell rubles abroad in exchange for dollars? But is there really any demand for rubles at all?… And who exactly buys them?
>>1340812
I'm not an expert but I'll speculate. I'd imagine they'd trade them with other countries/businesses. Or say when russia is exporting goods they might take payment in different currencies of different denominations if they wish. There's got to be a demand for rubles. Most countries like diversifying so they're not all holding onto one asset. Just like when the brexit vote came out everyone was dumping their cash into francs and gold.
>>1340815
> Just like when the brexit vote came out everyone was dumping their cash into francs and gold.
Hm, yeah, this partly explains it, thanks.
