The country is small:
It’s less than 10 000 sq km in area, has fewer than 1 million people, and GDP less than about US$50 billion. It might have a coast. It’s a liberal democracy, or at least mostly a liberal democracy. It’s been independent for almost 100 years, attempts a strong neutrality, and is thus generally non-aligned.
I suppose the country’s currency is hard, or reasonably hard, enough that it can be freely exchanged.
In this country you can bring a gym bag with US$1 million (say 10 000 $100 bills) in or out of the country. There are banks there which you can deposit the money, and while they might be required to report this to the government, the government won’t tell the governments or other international organizations about it.
What would be the consequences for such in international relations?
Thank you.
Edit (probably over 20 minutes after posting):
However, I should have added, that this generally occurred between 1998 and 2004.
I don’t think trade deficits matter that much, or if they really exist (if 100 million Americans bought US$100 billion in Chinese electronics, the Chinese get the money and the Americans have the electronics—where’s the deficit when both got what they wanted?).
I don’t know what the banks would do with the cash, but I figure they would find a way to use it.
That is a fair perspective to have on a personal level but outside of the US banking system. Why would anyone assign any value to the US dollar?
The only reason why a US dollar has any value is because you can recycle the dollars into oil (or gold or silver or platinum).
Now that oil/dollar recycling was killed by Trump, the global demand for US dollars is collapsing slowly as countries try to unwind their dollar positions.
The question of the value of any currency is what can you get with that currency. That is why trade deficits ultimately disappear. It ultimately accumulates and impacts future prices.