Why is US $ used worldwide as many other currenices are stronger than this.?

Question

Why is US $ used worldwide as many other currenices are stronger than this.?

Answer 1

1-Because when americans used to rule these countries in the world war they used US$ and they did not change it since

2- easier for world trade

the United States has the highest imports, exports, and forign investments between the traid countries (US - Europe - Far Asia)

3-It's polical thing..

for example Saudi Arabia is severly suffering because their currency is peged to the US $ and is valuated by it..

Although Saudis should be swimming in money since they are exporting oil to the world and have the largest oil reserves!

they import everything  from the states, europe and from far Asia and they dont manufacture so "everything" is expensive expect the american products!

Their King wont unpeg the currency from US$ because the world will suffer since the cost of oil will be much more higher than it is already is for the world and this may sever damages!

If you notice the barrel of oil is valued by the US $ and not by the Saudi currency.. the states will be in deep sh**t if such thing happens..

Saudis are praying oil prices go down so the US dollar goes down and their currency can get its old value

a million Saudi Riyal is almost worth 600 thousand Saudi Riyal because of the US$ and they can not change it

Answer 2

The reason is simple a lot of the global buisness are owned or have big  offices in the US

Answer 3

because historically it's been the safest, most insured, least likely to bust currency around and it's still true. even though the US Economy is in a recession, it's still true.

don't confuse current value (ie: Dollar vs Euro) with long term "strength".

again, it's a historical thing. if we go thru a long period where other currencies entrench themselves in strong positions and are backed by stable democracies of first world nations, etc .. then sure it is conceivable that world markets will shift from viewing the US Dollar as the world's most stable current to something else. but we are not close to the time yet, despite what has happened the past 12 months or so.

Answer 4

Because America has the biggest economy.

Answer 5

Agreement made after WW2