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...
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.