When the tragic invasion of Ukraine began last February, Russian people eager to avoid entrapment in a war that vandalized reason turned to dollars. Get it? Not only do dollars liquefy a fair amount of exchange inside Russia, they were also a way out of Russia for citizens who weren’t going to hand over their lives to Vladimir Putin. Notable about the dollar’s acceptance as a medium of exchange is that what’s much circulated in Russia is similarly circulated in Ukraine.
While the dollar has many demerits (more on them in a bit), it remains money par excellence to much of the rest of the world such that it’s the main currency in the parts of the world where the local money isn’t trusted. The world is dollarized care of market forces, and it’s long been that way.
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