The dollar and other currencies at a glance

[yhiaali3]

The main reason for the strength of the dollar is the dollar's dominance, and this can be likened to Bitcoin's dominance in the crypto market, making it the number one cryptocurrency without competition, and this is the case with the dollar.

The dollar's dominance stems from many factors, including its status as the world's primary reserve currency, the currency of global trade (especially oil), the currency of global debt, and its backing by the world's largest bond market (US Treasury bonds).
Above all, it is supported by the strength of the US military and its political influence.

[DrBeer]

The US have to tell the world why and how the dollar is so valued in the world. For crying out loud, every other currency in the world is useless compared to the dollar and even in recession the dollar is still powerful. In the mix of the US and Iran war the dollar is strong. So i believe even if the world economy is in recession the dollar will still wax stronger. Is it that the US have the best economist in the world?

The fact is that, after World War II, the global economy needed a convenient, standardized mechanism for financial cooperation. The United States proved to be more cunning and astute than others,given that its economy had not suffered as much from the war as other countries had,and it proposed the dollar as the world’s reserve currency. How this came about is a whole other story; the main thing is that the WORLD accepted it! And it turned out to be incredibly convenient and profitable. Yes, the U.S. reaped enormous benefits from this. BUT... who was stopping others from taking their place?
Today, the dollar is backed by the might of the U.S. - its economy, technology, political influence, military, and much more.
Can anyone offer similar conditions? That’s the whole explanation...

P.S. I’ll answer right away-no, China can’t; an expensive yuan is extremely disadvantageous for it.

[stompix]

United States inflation rise to its highest since 2021 to 4.2%. United States inflation was below 4% since 2021 but the war in Iran was one of the reasons the inflation was more in the country this time around.

So the US inflation spiked to 4.2%, Iran's inflation went to 70%...
I can guess who the winner was!

You probably are joking. If all currencies except the dollar are useless, then why is the dollar constantly falling against some of them, for example, the ruble? As far as I remember, the dollar is strengthening only against the Turkish lira. Also, the role of the yuan in the world has long been almost equivalent to the dollar.

You mean a currency that nobody can actually trade outside Russia? 
But yeah, 3 day after the 3 day operation ends, you will see a huge spike in the value of the rubble, any moment now, any moment.

I wonder why nobody here on this forum is using the ruble as a currency, if it's that much better than the USD!
Oh wait, you're also getting paid in $ value for your signature, talk about irony!

[Charles-Tim]

So the US inflation spiked to 4.2%, Iran's inflation went to 70%...
I can guess who the winner was!

I am not comparing United States to any other countries, including Iran. Even before the war that started in February, but that has ended now, there has been a massive inflation in Iran. I think since 2022, Iran currency has increased 3x, but that is not what I was discussing about. I was discussing about United States still having inflation. There is not other currency that I am supporting if discussing about deflation than bitcoin.

[Rengga Jati]

The answer is yes, because so far, nothing has been as strong as the USD. Like it or not, this is a fact. Despite the many controversies and speculations, the fact remains that, to this day, the USD remains the strongest. In fact, when they went to war, it was my country's currency that was destroyed and inflation occurred. Hmmm.

Essentially, the USD remains so strong because it remains the world's reserve currency, due to its relationship with the central bank. The US economy is also very strong and large, and its market is strong too. Ah, the point is, America is a strong and developed country, and it has gold reserves too. So, what can avoid?

more, here:
Strong U.S. Dollar

[stompix]

I was discussing about United States still having inflation. There is not other currency that I am supporting if discussing about deflation than bitcoin.

Bitcoin still has a 1.8% inflation, even if not correlated to any other currency, as the circulating supply keeps increasing.
Bitcoin will not be experiencing deflation on its own this century! 

You get deflation with Bitcin only if you compare it to a fiat value, and in this case, you should add the median fiat value for the year also, and you're not going to like what the price of a loaf of bread looks YoY with BTC either.

[Cryptomultiplier]

The answer is yes, because so far, nothing has been as strong as the USD. Like it or not, this is a fact. Despite the many controversies and speculations, the fact remains that, to this day, the USD remains the strongest. In fact, when they went to war, it was my country's currency that was destroyed and inflation occurred. Hmmm.

Essentially, the USD remains so strong because it remains the world's reserve currency, due to its relationship with the central bank. The US economy is also very strong and large, and its market is strong too. Ah, the point is, America is a strong and developed country, and it has gold reserves too. So, what can avoid?

more, here:
Strong U.S. Dollar

In addition, the U.S dollar is strong because of historical deals like we see as one of the leading reasons why Iran is fighting so hard for de-dollarization, knowing that it was an old deal that made them dependent on the dollar till date.
It also boils down to global psychology at the time. It is more like a safe haven currency even during wars and it's financial market is most transparent and the deepest.
Not even the Chinese yen or Eurozone has the kind of depth it has to absorb much capital quickly and safely that's why it remains number one.

[iamsange]

The US have to tell the world why and how the dollar is so valued in the world. For crying out loud, every other currency in the world is useless compared to the dollar and even in recession the dollar is still powerful. In the mix of the US and Iran war the dollar is strong. So i believe even if the world economy is in recession the dollar will still wax stronger. Is it that the US have the best economist in the world?

It's not about economics, but rather the influence of global trade, which still uses the dollar when other countries make purchases. For example, when a country in Asia or another continent wants to buy crude oil or other oils from an oil-producing country, the country in question must use dollars for payment. Therefore, that country must buy dollars even though their own currency isn't the dollar. This is what makes the dollar stronger, as other countries do the same when they want to buy something globally from that particular country.

[SUPERSAIAN]

It's not because the American dollar is a reserve currency. Other currencies don't have that feature. If you have dollars and you visit a country, you can always find the equivalent value in that currency. If you want to exchange any other country's currency, then things might be difficult. In my opinion, there won't be any change in fiat currencies the dollar will continue to be a reserve currency because there's no reason for it to change.

[Hypnotizer]

The US have to tell the world why and how the dollar is so valued in the world.

Tell the world what exactly? Everybody knows why the Dollar is valued and it’s because of it’s usage in most international trades and the petro-dollar, As many replies above have mentioned

For crying out loud, every other currency in the world is useless compared to the dollar and even in recession the dollar is still powerful.

This statement is actually wrong! Not “every currency” is useless or have lesser value compare to the US Dollar, there are currencies with more exchange rates and value than the US dollar right now, and they’re about five of them I think including currencies like the British pounds and Kuwaiti Dinar. So you might actually want to do some research about this..

In the mix of the US and Iran war the dollar is strong. So i believe even if the world economy is in recession the dollar will still wax stronger. Is it that the US have the best economist in the world?

It isn’t about having the best economist in the world or something like that, it’s just a simple matter of economy and trade..

[eaLiTy]

~
You mean a currency that nobody can actually trade outside Russia? 
But yeah, 3 day after the 3 day operation ends, you will see a huge spike in the value of the rubble, any moment now, any moment.

There is a slight difference of opinion. There are bilateral trade hubs, and Russian Rubles are traded outside Russia. In fact, India and Russia trade solely using local currencies, and the same goes for China and several African countries.

There is no question about the dominance of the US dollar, as it is built into the default structure of global trade. However, there are other alternative blocs like the BRICS are now operating outside the western SWIFT network.

Furthermore, Saudi Arabia started accepting other currencies for oil trading, ending the exclusivity clause to sell oil solely in US dollar is a major change to the dollar hegemony but it will not hurt the dominance just like that.

~
They'll read your behavior like a book and tell you what you'll agree with. That's their trade. At least lawyers don't hide what they do, these motherfuckers though, they are sneaky. They lie more than lawyers but people still hate lawyers more. That's unfair.

Economists are good storytellers, they speak as if they are explaining an objective science and once that prediction fails, they will find a way to explain away the collapse with another good story. I completely agree with your point. 

[slapper]

Respect the enthusiasm but this take has some holes in it. The dollar is not strong because "America has the best economists". It is a fact that some of the worst money moves ever were made by American policymakers. Infrastructure is a reason for the strong dollar. SWIFT processes over 51% of global payments in dollars as of March this year. Mostly you still pay dollars when you want to buy oil. That is 80 years of path dependency since Bretton Woods.

Iran situation mentioned as proof of dollar resilience. The Strait of Hormuz was closed, oil prices hit $120, and the world economy was hit by a $2.2 trillion loss. The dollar did get stronger during all those events, yep. But why? Not because America's economy was doing well. One reason was that there was fear. In the event that things go wrong, everybody heads to what they are familiar with. The dollar is the financial world's go-to panic button. Thats addiction.

The dollar's power is hardly up for debate. The more interesting issue is what happens when a monopoly on trust becomes a competition for it. BRICS Pay, CBDCs, local currency settlements , none of them are ready yet. However the mere existence of these tells you something about the rest of the world's attitude to relying on a single country's currency.

[stompix]

~
You mean a currency that nobody can actually trade outside Russia? 
But yeah, 3 day after the 3 day operation ends, you will see a huge spike in the value of the rubble, any moment now, any moment.

There is a slight difference of opinion. There are bilateral trade hubs, and Russian Rubles are traded outside Russia. In fact, India and Russia trade solely using local currencies, and the same goes for China and several African countries.

There are two things:
- propaganda, in which the world trades in shitcoins
- reality, where everyone wants dollars:
https://www.reuters.com/markets/currencies/india-russia-suspend-negotiations-settle-trade-rupees-sources-2023-05-04/
and then:
https://www.tradingview.com/news/moneycontrol:9e496ae6c094b:0-india-mulls-a-monthly-rupee-ruble-exchange-rate-to-spur-trade-with-russia/

See these tiny details here?

India started exploring a rupee settlement mechanism with Russia soon after the invasion of Ukraine in February 2022, but this practice failed to pick up given the skewed trade balance between the two sides. Especially for discounted Russian oil, payments are increasingly being de‑dollarised and routed through UAE dirhams, rupees, and yuan to work around sanctions.

Oh, you don't? It's easy:
https://en.wikipedia.org/wiki/United_Arab_Emirates_dirham

It is pegged to the United States dollar at a constant exchange rate of approximately 3.67 AED to 1 USD

They are ditching the dollar by using a currency that is actually pegged to the dollar; D; D; D
It's like saying you ditch the dollar by using USDT!

There is no question about the dominance of the US dollar, as it is built into the default structure of global trade. However, there are other alternative blocs like the BRICS are now operating outside the western SWIFT network.

In what currency is your signature paying?
How many pay in rubles, rupiah, and other garbage?
Why is the USD dominating this forum well outside of SWIFT or sanctions or anythign else?
Because people like to spread propaganda till it hits their wallets, that's why!

[Adiljutt156]

I think ots not easy that US dollar will lost his worth as easily as it is often said because this is the strongest currency world wide. I think there is no proofs in the past as well when the dollar was lost the worth. In fact including me we always see that the demand of dollar has been increased gradually. it has a great influence in the world economy so its not possible that the dollar will get crashed this easily. In fact Pakistani currency is also measured against the dollars of US as the dollar becomes strong it affects a lot more thing. It is used worldwide for trading and connect all the tradings which happens in all over the world. the fluctuations in the price of dollar always happened and the things related to this also in up and down situation.

The strength of US dollar is not because the US has the best economist it is because of the global trust that it have all the trade in the world is in Dollars there are other currencies who are trying to compete it like Euro and pound, they have emerging market but they are not up to the level of dollar the amount of trust dollar have in the global market is not match able by the other currencies, all the global trade like oil are being priced in dollars specially during time of pandemic investor were trying to put their fund into more safest one and US government bonds are considered safest at time of the crises. And the central banks holdlarge amount of it because it is widely trusted and it is highly liquid and it is back by the size of the stable economy of US and their financial system

[Asiska02]

The best economists in the world, No, that is not the reason why the dollar has the strongest currency in the world. Dollar is used for basically everything in the global trade market and that’s why it’s very strong today. Many countries have their world reserve currencies in dollars, so they borrow and pay debts in dollars and also buy dollar to strengthen their currency when it’s devaluing.

Many countries use dollar for transaction instead of their local currencies when buying goods from another country, thus further strengthens the dollar. During crisis, people run to buy dollar as safe assets instead of employing other options, they have confident in it than any other alternative, while investors prefer to invest mostly in US financial markets like their stocks.

[DanWalker]

P.S. I’ll answer right away-no, China can’t; an expensive yuan is extremely disadvantageous for it.

A stronger yuan could put pressure on China's export, especially low cost goods, which would be affected the most. However, China is offsetting this through producer price deflation and a shift toward higher tech export.

If this economic transition is successful, a stronger yuan may no longer be a major risk. Conversely, it could also be a sign that their economy is shifting towards greater sustainability and higher added value.

The Chinese economy is going through different stages of development according to a deliberate and relatively clear strategy, and its not difficult to see that its ultimate goal remains to replace USD. But whether they will succeed remains a big question.

[sunsilk]

The US have to tell the world why and how the dollar is so valued in the world.

They don't have to tell it because for being a major economic player in the global scale and being used as reserved currency of other countries, that makes them powerful and valuable.

This is also the reason why China is increasing its major allies so that its CNY is being used as their reserve currency and also for major transactions done on their trades.

For crying out loud, every other currency in the world is useless compared to the dollar and even in recession the dollar is still powerful. In the mix of the US and Iran war the dollar is strong. So i believe even if the world economy is in recession the dollar will still wax stronger. Is it that the US have the best economist in the world?

Not at all. As you can see there are currencies which are powerful but they're not known yet look at how good their economy is.

For example, the strongest currency is the Kuwaiti Dinar.

[cocadalcan]

The US have to tell the world why and how the dollar is so valued in the world. For crying out loud, every other currency in the world is useless compared to the dollar and even in recession the dollar is still powerful. In the mix of the US and Iran war the dollar is strong. So i believe even if the world economy is in recession the dollar will still wax stronger. Is it that the US have the best economist in the world?

America has petrodollar strategy through which they have gained sole dominance in the world economically. They are much stronger economically and militarily than other countries in the world. To strengthen the dollar globally, they have strengthened this currency system in the bank channel, as a result, the dollar is preferred and in many cases mandatory for payment of goods. BRICS was established by 4 countries of the world for commercial transactions and they proposed to introduce an alternative currency system, but America did not allow their efforts to succeed. Although the number of BRICS member countries is currently 11, they are not able to introduce a separate currency system for commercial transactions due to US pressure. The US President said that if BRICS introduces a different currency system, those countries will be subject to high tariffs or military force.

[WillyAp]

This is also the reason why China is increasing its major allies so that its CNY is being used as their reserve currency and also for major transactions done on their trades.

China plays too much with their currency, that is the biggest point adverse to gain public trust.
It is also the biggest issue what DT wishes to do with their currency 

[DrBeer]

P.S. I’ll answer right away-no, China can’t; an expensive yuan is extremely disadvantageous for it.

A stronger yuan could put pressure on China's export, especially low cost goods, which would be affected the most. However, China is offsetting this through producer price deflation and a shift toward higher tech export.

If this economic transition is successful, a stronger yuan may no longer be a major risk. Conversely, it could also be a sign that their economy is shifting towards greater sustainability and higher added value.

The Chinese economy is going through different stages of development according to a deliberate and relatively clear strategy, and its not difficult to see that its ultimate goal remains to replace USD. But whether they will succeed remains a big question.

The point is that for an export-oriented economy,which the Chinese economy is,a stronger yuan is not beneficial for domestic manufacturers! This leads to problems such as a decline in production, which in turn means a drop in exports, i.e., an economic contraction.
Another problem is that China remains dependent on Western technology and Western markets. China needs to sell high-value-added goods, and this can only be done in "rich markets"; this means that China needs the European and American markets, where it can earn significant profits through added value, but it won’t be able to sell these goods in sufficient quantities in, for example, the African market.
 A focus on "poor markets" also leads to a decline in production quality, because it becomes profitable to produce very simple and low-quality goods.