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Which global currency arrangement allows countries to settle bilateral trade without relying primarily on the US Dollar?

  • A Gold standard
  • B Local currency swap agreements
  • C Fixed exchange rate system
  • D Currency board arrangement
Correct Answer: Option B — Local currency swap agreements
Explanation: Local currency swap agreements allow countries to settle bilateral trade directly in their respective national currencies, reducing reliance on the US Dollar and easing foreign exchange pressures.
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