How did $ Dollar become World Global Currency

Gold Standard dictated currency prices some 8 decades ago. Each currency would mean a specified quantity of gold & international trades were settled by transfer of gold.

2 World Wars turned tide for US$. In wars, US marched in quite late & came out relatively unharmed. With resources still intact, it became supplier of weapons, goods as well as a lender for other countries.

As all buying & borrowing countries made payments in gold, it was raining golden for US. By time war ended US held most of world’s gold, making it impossible for other countries to make further trade payments in gold!

In 1944, Allied countries assembled concluded US had most of world's gold US$ was a better exchange. So, each currency would mean a specified amount of $ & a dollar's value would be pegged to gold.

Central banks maintaining fixed ex rates dollars then took place of Gold in countries’ reserves. Countries had to store these dollars somewhere, so they started buying US Treasury bonds, which would then become a safe haven.

While funding Vietnam war US ended up flooding world with dollars depreciating its value. countries started doubting stability of $ & demanded US Govt for gold in exchange of their Dollar reserves.

88% of all forex trades are in US$ 59% central banks reserves is in US$ 40% of world's debt is issued in US$

Click below on the Link

Read More Interesting Stories