Why the dollar became the world currency, and why the dollar became the world currency

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1. Is the U.S. dollar an international currency?

The U.S. dollar is the international currency. After the Bretton Woods Conference, ** was abolished and the US dollar was changed to the international currency, but the US dollar was still pegged to **, so that the ** relationship between Zheng Yu in various countries could only be circulated in US dollars.

2. United States dollars

The US dollar is the legal tender of the United States of America, the Republic of El Salvador, the Republic of Panama, the Republic of Ecuador, the Democratic Republic of Timor-Leste, the Republic of the Marshall Islands, the Federated States of Micronesia, the Republic of Kiribati and the Republic of Palau. The dollar banknotes in circulation are the editions of banknotes issued since 1929.

It appeared after the passage of the U.S. Minage Act in 1792. Currently, the issuance of the US dollar is controlled by the US Federal Reserve System. Since 1913, the United States has established a federal reserve system and issued federal reserve bills. More than 99% of the banknotes currently in circulation are Federal Reserve Bills.

The issuing authority for the US dollar is the Congress, and the Federal Reserve Bank is responsible for the specific issuance business. After World War II, continental European countries reached an agreement with the United States to use the U.S. dollar for international payments, after which the U.S. dollar was widely used as a reserve currency outside the United States and eventually became an international currency.

3. International reserve currencies

The international reserve currency refers to the international monetary funds held by a country that can be directly used for international payments, and is a part of the international solvency that can be used at any time to maintain the exchange rate of the national currency or intervene in the foreign exchange market. With the development of foreign economy and changes in the international monetary system, monetary funds as international reserves have also changed. Before the First World War, the British pound was widely used as the main reserve currency by capitalist countries, and during the Second World War, the US dollar rose to become the main reserve currency, and replaced the British pound as the main reserve currency after the Second World War.

The fact that the U.S. dollar became the world's currency did not come into being in a vacuum, based on the super-powerful military, industrial, and commercial power that the United States demonstrated in World War II.

The most fundamental thing is that the United States is the only industrialized power in the world that has not been crushed, and it is obvious that it will become a superpower, and everyone will have to buy things from the United States if they want to. You exchange with the United States, borrow, and please use dollar OK. Before World War II, the British Empire, which had struggled to become the world's leader through the First Industrial Revolution nearly 200 years earlier, was helpless in the face of Germany, which did not die in World War I.

After the Second World War, the glory of the empire has basically become a passing cloud. At the stage of cleaning up the battlefield, the Americans called everyone to a meeting to propose a new world and a new order, and at the end of World War I, everyone stipulated the distribution of the tonnage of the world's most important ships, but the Americans understood that the distribution of military strength had been basically determined, and the United States and the Soviet Union were polarized, and more important in the future was the establishment of the first status, and the Bretton Woods system was born;

At the heart of the Bretton Woods system is $35 to 1 ounce**, with the rest of the world's currencies pegged to the dollar and limited to a 1% up/minus 1% fluctuation. This means that in order to maintain such a stable monetary value system, the United States needs to have a large amount of reserves to support its commitments, and countries around the world need to hold a large amount of dollars to endorse the value of their currencies.

Summary. The U.S. dollar is the currency of the United States and one of the most important reserve currencies in the world. Here are some of the characteristics of the U.S. dollar as a currency in the United States and the world:

U.S. Dollar as U.S. Currency: The U.S. dollar is the official currency of the U.S. federal federation and is also the legal tender of the United States. The U.S. dollar is primarily issued and managed by the U.S. Federal Reserve System.

The U.S. dollar as the world's currency: Since the U.S. is the world's largest economy, the U.S. dollar plays an important role in international** and finance. Many countries and regions hold the U.S. dollar as a foreign exchange reserve to ensure their currency stability and liquidity.

In addition, a large number of international** and investments are also settled in US dollars, so the US dollar is also regarded as one of the world's leading currencies in finance and facilitation. Changes in the exchange rate of the U.S. dollar: The exchange rate of the U.S. dollar is affected by a variety of factors, such as the economic conditions of the United States, interest rate policy, political environment, international relations, etc.

Due to the importance of the US dollar in the global economy, fluctuations in its exchange rate can have a profound impact on other countries and regions.

The U.S. dollar is the currency of the United States and one of the most important reserve currencies in the world. Here are some of the characteristics of the U.S. dollar as a U.S. and world currency: The U.S. dollar as a U.S. currency:

The U.S. dollar is the official currency of the U.S. federal federation and is also the legal tender of the U.S. The U.S. dollar is primarily issued and managed by the U.S. Federal Reserve System. The US dollar as the world currency:

Since the United States is the world's largest economy, the U.S. dollar plays an important role in international and financial affairs. Many countries and regions hold the U.S. dollar as a foreign exchange reserve to ensure their currency stability and liquidity. In addition, a large number of international** and investments are also settled in US dollars, so the US dollar is also regarded as one of the world's leading currencies in finance and facilitation.

Changes in the exchange rate of the U.S. dollar: The exchange rate of the U.S. dollar is affected by a variety of factors, such as the economic conditions of the United States, interest rate policy, political environment, international relations, etc. Due to the importance of the US dollar in the global economy, fluctuations in its exchange rate can have a profound impact on other countries and regions.

Can you tell us more about that?

In short, the U.S. dollar is not only the currency of the United States, but also one of the most important reserve currencies in the world, and it plays a vital role in global security and finance.

1.Because the political situation in the United States is stable, although the United States has not been established for a long time, the United States has not been in chaos since its founding, and the dollar effect has not changed in wartime or peacetime, but other countries such as ** have a long history but a very short monetary history (less than 100 years), so any currency holder will take into account such a problem, if the country ** falls, then the currency is just waste paper (refer to the Iraq War, all the arrears of France during the Saddam period were invalidated, and the dinar was revalued)

2.Moderate purchasing power, in fact, the yen is also a world currency, but the purchasing power of the yen is too low to be traded, and the euro has a short history, and it takes time to enter the world currency trading market, so the dollar is used as a world currency.

Pure hand-to-hand, hoping to add some points.

Not arrogant or impatient, we continue to work hard to move forward.