02 August 2025
Hey! The US dollar is the global currency mainly because:
1. **Economic Strength:** The US has the largest economy for decades, so people trust its currency. 2. **Stability:** The US political and financial systems are relatively stable, making the dollar a safe bet. 3. **Oil & Commodities:** Many global commodities (like oil) are priced and traded in US dollars — often called the “petrodollar” system. 4. **Reserve Currency:** Central banks around the world keep huge reserves of US dollars for international trade and finance. 5. **Historical Agreements:** After WWII, agreements like Bretton Woods established the dollar as the main global currency linked to gold, which helped cement its role.
So, it’s a mix of trust, power, and practical usage worldwide. Does that clear things up?
CAclubindia
