Euro J

What does the strong euro mean in terms of the US paying back foreign debts?

More specifically, how does the weak dollar against the stronger euro impact the US's ability to pay back debts to the Euro Area? When the US borrows from other countries, is that money paid back in terms of US currency or the currency of the lending nation?

Public Comments

1. same as when you borrow $$$ from banks, lending institutions, etc. you pay back what you borrowed in the same currency from where you borrowed, unless otherwise stated. the weak american dollar in european area means trouble for a while. for every dollar borrowed, this translates into more american dollars being repaid to cancel the loan. my question is why do we borrow knowing this could and often does happen? i guess this is international trade, and the devils that come with the 'package'. this is good, however, for euro trade. they'll buy more because they can get more. more american trade, more $$$, more availability to repay (what we shouldn't have borrowed). oh well, i've said it before. if i ran a business like govts run their treasury, i'd be in really big trouble or out of business.
2. the terms depend on the specifics of that loan,Sad,but,we borrow alot from China as well.Nowadays they just print more,and the dollar loses more and more value..