The U.S. economy is spooking investors. But every day, all around the world, foreign businesses are still eager to use U.S. dollars — even when their business has nothing to do with the U.S.
When South Koreans buy Chilean wine, they convert their Korean won to U.S. dollars, and send those dollars to the winery in Chile. The winery then converts the dollars into Chilean pesos. This kind of thing is routine in global trade, according to Barry Eichengreen, an economist at U.C. Berkeley.
Why not just go from won to pesos?