More on the dollar’s status in Panama and benefits we derive..,
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The monetary agreements that led to the use of the US dollar in Panama offered several benefits to the United States:
1. **Stability and Control:** The use of the US dollar provided monetary stability to Panama’s economy. The US dollar is considered a stable and internationally recognized currency, which can contribute to economic stability and confidence in financial transactions.
2. **Trade and Commerce:** The US dollar’s widespread use facilitates trade and investment between Panama and the United States. It eliminates the need for currency conversion, making transactions smoother and reducing transaction costs.
3. **Economic Influence:** Having the US dollar as the official currency in Panama can indirectly promote economic ties between the two countries. The currency arrangement may create a favorable environment for US businesses to operate and invest in Panama.
4. **Strategic Interests:** The US has historically had strategic interests in the Panama Canal and the region. The monetary agreements, including the use of the US dollar, could be seen as part of the broader relationship between the two countries, supporting cooperation and alignment on various matters.
5. **Regional Stability:** The monetary stability brought about by using the US dollar in Panama can contribute to overall regional stability in Central America, which aligns with the United States’ interests in promoting economic and political stability in the region.
6. **Influence on Policy:** The continued use of the US dollar might provide the United States with some level of influence over Panama’s economic policies, given the importance of maintaining the stability of the currency arrangement.
It’s important to note that while these benefits exist, the decision to use the US dollar in Panama was also based on Panama’s own economic considerations and goals, including attracting foreign investment, promoting economic growth, and ensuring monetary stability.
Re Panama:
Interesting posts. I didn’t know they still use the dollar. Perhaps TtT was using repeated mentions as a warning to China? Maybe the derps were planning to blow it up to cripple the world economy?