I think you have several good answers. Dollars are only good in the US so that's where they stay. The same way that a US bank wouldn't really hold another currency. It will stay where the currency is valid.murphy_p_t wrote: Craig, you wrote: "If they have any assets in US dollars they are being held in a US bank somewhere. That's even what Swiss banks do."
Can you elaborate on this point? Or maybe you have a reference article?
So if you are trying to be slick and put money in some offshore haven, but want to hold dollars, the dollars are still in the US financial system even if the bank is offshore.
If you really want money held outside your border, you need to send it to a bank or other institution and convert it to the host country currency or a hard asset like gold that is held there. You can't hold the money in dollars. That achieves nothing but electronic bookkeeping entries.
