Okay and thank you for your reply.

Having their own currency is a pride thing. Having it pegged is a concession to the need to have it backed, but pegged to a basket means they aren't totally financially beholden to anyone bigger than the country.

They also have notes that are worth more than US$1000: one might not need a gym bag of US bills when it could be replaced with a fanny pack of the country's currency.

The amount of money the US has is, IIUC, slightly over $2 trillion. This country's currency probably totals to less than 1% of that.

As it is, I imagine the bank would do with the dollars as you've described.

The thing is, some US regulators, bureaucrats, and politicians—maybe some from the FBI, DEA, and a few other agencies—as well as those of other countries who have their own drug warriors, would want to inhibit such transactions.

I can easily imagine that they might push their banks to not deal with these types of banks in my fictional country, perhaps none of the banks or other financial institutions in that country, until that country changes the laws and gets in line.

With the Russian-Ukrainian war these past few years, I've been hearing about sanctions against Russia and some Russian YouTubers are talking about how hard it is to get money back to their relatives. Presumably Russia deals with partially this by maintaining a banking system in Russia where people in, say, Saint Petersburg and Vladivostok, could exchange money, including electronically, and as some countries still trade with Russia, transfers between these cities and, say, Belgrade, Brasilia, and Beijing (hey 3 "B"s!), might be similarly easy.

Some of these countries might not be too concern with this country allowing the aforementioned drug laundering because they control their own drug trade with repression. Idk.

I wonder if these would happen, and by how much, and how my fictitious country would cope with such.