Everything’s a dollar! Candy – food, food – stationery, stationery – toothpaste, name it and they have it, all under a dollar. The Dollar Store, Dollar General, Dollar Tree, Costco; within every mile, near every gas station you can find a huge building with a dollar sign in some cases a 99 cents.
A reserve currency is a national currency held by many other governments around the world as part of their foreign exchange reserves. The status of a reserve currency indicates a powerful economy as other governments depend on the reserve currency’s stability to manage their own monetary policies. It allows that country to ‘export inflation’; because when it prints money it circulates it outside its own economy as well, keeping the local money supply much more stable than non-reserve currencies that print money. Traders prefer working in a reserve currency because it minimizes costly exchanges when buying or selling and it gives them what they need most: efficiency and maximization of economic power of the nation to which the reserve currency belongs.
Have you ever wondered that why Dollar is considered as a global currency and why not others? Or how has Dollar emerged as the leader in the world over other nations? Still wondering…but no more. Let’s look into the facts and the rationale behind the use of dollar everywhere.