Does it harm the economy if I sell locally made products in dollars to the local market?

[Kross]

The way businesses operate in a country would definitely affect how the economy of the country would turn out. Do you think it is right for a business that is engaged in local production to sell it's products in dollars to the local market? Does it affect the economy negatively?

 

[Fidelia]

It would weaken the local currency against the dollar. I don't think the government would be a happy with such a business.

 

[eLdavis]

It actually has its benefits and as well as its disadvantages. For example some persons might not have easy access to dollars, hence limiting their ability to buy. Then one of it's major benefits is that it would encourage foreign exchange.

 

[Suba]

In my country there is a ban on using foreign currencies such as dollars, yen, etc. for transactions except in Bali and Batam, the influence of the dollar on the local currency/economy depends on the amount of your sales whether more than 10% of dollar transactions in your country.

 

[Nomad]

if you sell in dollars to the foreigners in your country, it certainly helps in the country economy as you bring foreign reserve.

 

[Trush Jodie]

When you sell locally in a foreign currency, you would be creating more demand for the currency that you are using to sell and harming your country's currency.

 

[magnus2022]

A country's currency is the only major means of exchange in that country. To use another currency is to depreciate the value of the currency. You will notice, people tends to use external currencies in a country where there hyper inflation. That's means that the currency have lose in the eyes of the users.

 

[Fire&Rain]

It might look profitable in the short term, but selling in dollars locally can hurt the economy. It limits access to those who don’t earn in foreign currency and reduces circulation of the local money. Over time this could weaken demand for the local currency and create unnecessary economic pressure on ordinary consumers.