Most international trade is settled in US dollars, what are the benefits for the United States?

Updated on international 2024-04-23
16 answers
  1. Anonymous users2024-02-08

    Many countries have great restrictions on the scope of their use, and if they say their own country, it doesn't make any sense, so they sometimes face inflation.

    The state is very passive. But,Most of the international ** settlements are in US dollars, what benefits can this bring to the United States?

    One of the benefits: it doesn't cause inflation. Because the U.S. dollar can be used and circulated in any country in the world, even if there are more currencies issued by one's own country, these currencies will be circulated to other countries and regions through various channels.

    So there will be no inflation, as is the case in the restricted countries, and certainly there will be no economic crisis.

    Benefit 2: It can cause economic losses to other countries by raising interest rates and lowering interest rates, and gain huge benefits from it. Because the dollar is in circulation all over the world, he often uses this method to hit countries with relatively weak resistance and let those countries see the bubble economy.

    Facing the financial crisis.

    Get a lot of money from it!

    Advantage 3: You can repeatedly pluck the wool. If it encounters a global economic crisis, the United States can also make its own country's economy bottom out by shorting the economy, and then use the same way to minimize its own losses and obtain high profits.

    Benefit 4:Loan sharksSame high yields. If a country's economy needs dollars to bail out, and everyone's dollars are limited, they can only relieve domestic economic pressure by borrowing American dollars, and borrowing must generate interest, and this part of the interest is also another part of the gray income of the United States.

    And the U.S. will take advantage of the time when you spend all your dollars to raise interest rates, bringing you an inevitable disaster.

  2. Anonymous users2024-02-07

    The vast majority of international ** is settled in US dollars, so the United States will definitely charge service fees and the like, which will also bring benefits to the economic growth of the United States.

  3. Anonymous users2024-02-06

    The US dollar has always been upgraded to become the world's currency, which is why it is so.

  4. Anonymous users2024-02-05

    Because the U.S. will charge something like a service fee, and it will also grow the U.S. economy.

  5. Anonymous users2024-02-04

    Collecting "tolls" The use of US dollars for settlement requires the use of the US financial system, and the US financial system will inevitably provide services to you.

  6. Anonymous users2024-02-03

    There are several reasons why the US dollar is used as the currency for international settlements:

    1. The Second World War.

    The post-international monetary system does not determine the exchange rate according to the seigniorage parity of each country, but according to the legal deposit of each country's currency.

    The comparison of parity is generally established in a fixed proportional relationship with the US dollar.

    2. Under the gold standard system, international reserve assets are mainly **. Post-World War II international reserve assets were**, convertible currencies and special drawing rights, with ** being as important as the US dollar. In terms of foreign exchange reserves, the pre-war period included the pound sterling.

    The dollar and the French franc, the international monetary system after the Second World War almost included capitalism.

    The US dollar is the most important foreign exchange reserve of all countries and regions in the world.

    3. Under the international gold standard, the flow of ** is completely free; Bretton Woods system.

    The flow of ** is subject to certain restrictions. Before World War II, the United Kingdom, the United States, and France all allowed residents to exchange**;

    Countries that have implemented the gold exchange standard also allow residents to exchange foreign currency (pounds, francs or US dollars) to the United Kingdom, the United States and France**; After World War II, the United States only agreed to allow foreign countries to exchange dollars for the United States under certain conditions, and did not allow foreign residents to exchange dollars for the United States.

    Extended Material: Impact of the U.S. Dollar Index.

    1. The U.S. dollar is the United States of America.

    Because it is the largest currency in circulation in the world, many countries use the US dollar as a reserve currency to balance the balance of payments, so the US dollar has become the base currency in the global foreign exchange exchange, and it is also the main currency in international payment and foreign exchange transactions, and occupies a very important position in the international foreign exchange market.

    2. The U.S. dollar index is an index that comprehensively reflects the exchange rate of the U.S. dollar in the international foreign exchange market, and is used to measure the degree of change in the exchange rate of the U.S. dollar against a basket of currencies. It measures the strength of the U.S. dollar by calculating the combined rate of change of the U.S. dollar and against a selected basket of currencies, where each currency has a different weight in the U.S. dollar index: the euro.

    Yen. The British pound, the Canadian dollar, the Swedish krona, and the Swiss franc can indirectly reflect the changes in the export competitiveness of the United States and the cost of imports through the analysis of the trend of the dollar index.

    3. The U.S. dollar index shows that the U.S. dollar is more than equal to other currencies, that is, the U.S. dollar appreciates, so the major international commodities are denominated in U.S. dollars, so the corresponding commodities should be. The appreciation of the US dollar is good for the country's entire economy, increasing the value of the national currency and increasing purchasing power. But there is also an impact on some industries, for example, in the export industry, currency appreciation will increase the export of goods, so it will have an impact on the export goods of some companies.

    If the United States refers to **, it is the opposite.

  7. Anonymous users2024-02-02

    Why is international bulk** usually settled in USD? First, we need a kind of sovereign state.

    A common currency that is easy to trade and measure in value.

    For example, the North Koreans buy 10 kg of rice from the United States. We think that 10 kilograms of rice are worth 30 yuan, but the North Koreans do not have yuan. They only have won.

    So they say give you 400 won, and you start hesitating. Can you buy 10 kilograms of rice for 400 won? Can you still buy 10 kg of rice in a month?

    No, this thing can only buy a kilogram of rice in their country, right? So the transaction becomes very complicated because you have to find out the true value of his 400 Korean coins first. If so many countries in the world had to do this every time in the international **, it would take a long time.

    Therefore, we all want to have a measure that can be established by convention, like Qin Shi Huang.

    Unifying the goods of the six countries is the same as bringing currency, which is the most basic way to facilitate transactions.

    To become a common currency in the world, we need a very strong comprehensive national strength.

    to guarantee the value of the currency.

    Undulation. Every country wants its currency to be the common currency in the world, but if it wants to become an international common currency, it needs to meet at least one basic need - exchange rate stability. If you exchange 10 tons of rice for 10,000 yuan today, you will find that you can only exchange 8 tons when you want to exchange 10,000 yuan for 10 tons of rice tomorrow.

    I'm sure no one wants to change this currency. The same is true for international**. If you want to ensure a stable exchange rate, you need to have a strong economic base.

    Later, the United States gradually established its leading position in the world economy and in the military sphere. The U.S. dollar, as the legal tender of the United States, is naturally promoted and used. It should be noted that the dollar has not always been a common currency in the international **, only after the Second World War.

    As for how many years it can be used in the world, it also depends on the development of other countries and the development of the United States itself.

  8. Anonymous users2024-02-01

    The U.S. dollar is the world's common currency and a wide range of circulation, the international financial system is centered on the U.S. dollar, and the United States also has the pricing power of many commodities. The currencies of many countries cannot be freely convertible, so they cannot be circulated globally, and there will be certain restrictions on external payments under the management of the system.

  9. Anonymous users2024-01-31

    Because the stability of the dollar will be better, it is normal for everyone to be willing to use it, after all, the United States is also a strong country. The United States also plays a very important role in the international community.

  10. Anonymous users2024-01-30

    Because in the past, the dollar was still relatively circulating, and it was circulated more often.

  11. Anonymous users2024-01-29

    What are the benefits of the U.S. dollar as an international settlement currency? It's better to be detailed.

    Hello dear! The main advantages are as follows: First, empty printing of dollar bills in exchange for the wealth of other countries. Clause.

    2. In accordance with the dual-currency principle mentioned in "New Economics," the United States takes advantage of the advantage of the US dollar running between its own currency and the world's largest currency circles at the same time, so that the United States can transfer its domestic financial risks to all countries in the world. Clause.

    3. Global overdraft through the depreciation of the US dollar. Further InformationWhy is the US dollar the world's mainstream settlement currency? Why can't the renminbi do it?

    What is the reason? At present, there are dozens of countries in the world, and there are different currencies in different countries, but only the US dollar is an internationally recognized currency, such as Venezuela and Iran, which are now beginning to appear dollarization. At present, in international transactions, US dollar transactions are still dominant.

    The current status of the US dollar in the international community should be very clear to everyone, and countries around the world have also recognized the liquidity of the US dollar. However, the dollar is not issued by the United States** as we imagined, but directly through the Federal Reserve. The Federal Reserve exists to control the issuance of dollars without receiving instructions from the United States.

    The Fed will raise or weaken interest rates based on its own judgment of the current actual economic situation. And at present, the United States is much stronger than other countries in many fields such as science and technology, education, etc., and the United States' strong military capabilities ensure the security of its own channels. And its scientific and technological level can also bring a lot of profits to the United States, which gives the dollar a strong voice in the world.

    The United States now has the largest GDP in the world and is recognized as the "most powerful" economy in the world. So from all angles, the current strength of the United States should not be underestimated. For a long time, the arbitrary "hegemonic" behavior of the United States has aroused dissatisfaction and suspicion from many countries.

    But since the 80s of the 20th century, there has never been a significant depreciation of the dollar.

  12. Anonymous users2024-01-28

    When a certain country surpasses the United States in terms of economy, science and technology, and military affairs, it is natural that the currency of that country will replace the US dollar as the world currency.

    The last 20 30 years have been difficult.

    Circumventing the U.S. dollar settlement has become cumbersome for commodity trading between the country's trillions.

  13. Anonymous users2024-01-27

    Why: First, it was not damaged by the war, and second, it presented a bipolar pattern of hegemony with Su Youhaohanlian, and its Lu Ju No. 3 stored the world's most Huangshen Xiaojin, so it has a super high voice in the world. It is not feasible to bypass the dollar.

  14. Anonymous users2024-01-26

    I don't think it can be bypassed, because the hegemony of the United States has not yet been broken, so now it has to be traded in dollars.

  15. Anonymous users2024-01-25

    This imitation width is caused by the larger circulation range of the US pants state yuan, and it is also possible to bypass the pure bright yuan of the United States, as long as both parties agree, it is also possible to use the currencies of other countries to trade.

  16. Anonymous users2024-01-24

    Summary. Yes, it is mandatory to settle U.S. charges in international**US dollars. The United States charges a fee for international dollar settlements to ensure international security and stability.

    The United States** has implemented a series of policies and regulations to ensure the security and stability of international**US dollar settlements. First of all, the United States requires participants in international dollar settlements to comply with U.S. regulations, including U.S. anti-money laundering regulations, anti-money laundering regulations, and anti-corruption regulations. Second, the U.S. requires participants in international dollar settlements to provide valid proof of identity to ensure the authenticity of the participants' identities.

    In addition, the United States** requires participants in the international US dollar settlement to implement effective security measures to ensure the security of transactions. Finally, the United States also requires participants in international dollar settlements to pay a fee to ensure the security and stability of international dollar settlements. These fees include regulatory fees in the United States**, audit fees in the United States**, security inspection fees in the United States**, etc.

    Therefore, it is necessary to settle U.S. charges in international** dollars.

    Yes, it is mandatory to settle U.S. charges in international**US dollars. The United States charges a fee for international dollar settlements to ensure international security and stability. The United States** has implemented a series of policies and regulations to ensure the security and stability of international**US dollar settlements.

    First of all, the United States requires participants in US dollar settlement to comply with US regulations, including anti-money laundering regulations, anti-money laundering regulations, and anti-corruption regulations. Secondly, the United States requires participants in international dollar settlements to provide valid identification of Xiaodong to ensure the authenticity of the participants' identities. In addition, the United States** requires participants in the international US dollar settlement to implement effective security measures to ensure the security of transactions.

    Finally, the United States also requires participants in international dollar settlements to pay a fee to ensure the security and stability of international dollar settlements. These fees include regulatory fees in the United States, audit fees in the United States, security inspection fees in the United States**, etc. Therefore, it is necessary to settle U.S. charges in international** dollars.

    You've done a great job! Can you elaborate on that?

    Yes, it is mandatory to settle U.S. charges in international**US dollars. Fees charged by the U.S. for international U.S. dollar settlements include: 1) fees charged by U.S. domestic banks, such as remittance fees, exchange rate adjustment fees, etc.; 2) Fees charged by the U.S. Administration of Foreign Exchange, such as foreign exchange management fees, foreign exchange reporting fees, etc.; 3) Fees charged by U.S. Customs, such as import duties, import taxes, etc.

    In addition, the United States will also charge certain taxes on international dollar settlement, such as import taxes, export taxes, value-added taxes, etc. The United States will also charge a certain customs declaration fee for international dollar settlement, such as customs declaration fees, inspection fees, etc. Therefore, it is necessary to charge the United States for international dollar settlement, in order to ensure the smooth progress of international dollars, enterprises should understand the relevant charging standards when carrying out international dollar settlement, so as to avoid unnecessary losses.

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