Dollar less popular for services trade than for goods – ECB paper
Large firms prefer sticking to the US currency, research finds
Most firms still prefer paying for services in dollars but the US currency’s popularity is “systematically lower” than in international goods trade, a new European Central Bank (ECB) paper shows.
Researchers João Amador, Arnaud Mehl, Martin Schmitz and Joana Garcia examined new data from the Bank of Portugal to show that currency choices in services trade are active firm-level decisions. They also looked at data from the ECB to show that the effect holds in six other European countries.
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