The Role Of US Dollar in Global Trade

[Fragrance1122]

1. Trade
A) Most countries bill each other in dollars.
B) Oil, gold, wheat = All priced in USD.
C) Most shipping contracts are in USD too.

2. Finance
A) Most international payments use USD.
B) Loans in USD are cheaper.
C) 9 out of 10 currency trades involve USD.

3. Power 
A) Every country needs USD to buy stuff.
B) The US can sanction others by blocking USD.

4. Will it change?
A) China, Russia, India want to use Yuan/Rupee.
B)  But USD is still king and 60% of the world still uses it.


Now the questions are
1) why are oil, gold and wheat almost priced in USD?
2) Why most of the loans are taken in USD despite local currencies?

[Nathrixxx]

The global trade is becoming more independent and we don't have to see a number of people depending much on the use of Fiat currency when we are already going far in cryptocurrency and this has been a unique opportunity for every actors to make profits in their financial and business Enterprise, with time we will see how bitcoin could also be a mainstream the same way we use Fiat currency as a global coin for international trades and other purposes, even though this is already becoming a reality and we only needed more time to achieve a unified adoption rate to Bitcoin in serving all this purposes.

[Mhizlove]

When it's comes to the US dollar, another reason is that it is wisely accepted around the world and it also has this high liquidity, which makes it easier for sellers, buyers and lenders to do business without being afraid or get worried about the exchange rate issues. When it comes to loan, alot of businesses choose USD because the interest rates most times is lower a d also the currency is easir6to use when it comes to international businesses. The risk is that if the local currency loses it's worth or value, the loan will be more expensive when it's time to pay back.

[Fragrance1122]

When it's comes to the US dollar, another reason is that it is wisely accepted around the world and it also has this high liquidity, which makes it easier for sellers, buyers and lenders to do business without being afraid or get worried about the exchange rate issues. When it comes to loan, alot of businesses choose USD because the interest rates most times is lower a d also the currency is easir6to use when it comes to international businesses. The risk is that if the local currency loses it's worth or value, the loan will be more expensive when it's time to pay back.

You are absolutely right Sir! The local currencies might lose its value with time and even if the dollar lose its value you have to pay back the same amount. I have seen people living in America when they give loan to their friends or relatives , they demand it's return in dollars rather than what it was equal to in loca currency in the time when they were giving loan. They make in oath dollar for dollar like blood for blood 

[Fortify]

Now the questions are
1) why are oil, gold and wheat almost priced in USD?
2) Why most of the loans are taken in USD despite local currencies?

Did you even try to answer this question, because it's fairly obvious. Over the last 75~ years America has been the most stable and highly economically productive nations in the world. Sure it has it's ups and downs when it comes to politics but it has not defaulted on any debt for a very long time which is the sign of a strong country and that allowed it to become the "reserve currency of the world". It doesn't generally fluctuate too much day to day against other currencies, unless the other currency has a lot of problems of its own. Most people would rather take out loans in local currencies because it's reflective of their earnings, but banks don't trust governments in many countries so force USD loans to protect their own investments.

[BIT-BENDER]

This is why Bitcoin and Crypto-currency is necessary, the dominance of the US dollar can't be overemphasized even if in recent years there has been lots of plans to displace the US dollar from its world wide dominance I still believe that it will require a mountain effort to see that even coming to pass.
Bitcoin on the other hand provide a decentralised system that every other country can appreciate and take advantage of, the fact that no country controls Bitcoin set it aside from any other currency.

[Zlantann]

B) Loans in USD are cheaper.

Could you please explain how loans are cheaper in USD?

4. Will it change?
A) China, Russia, India want to use Yuan/Rupee.
B)  But USD is still king and 60% of the world still uses it.

There were proposals for the establishment of a single currency by BRICS nations. But this has not materialised. However, Russia, India and China are using their local currency for trade payments.

Now the questions are
1) why are oil, gold and wheat almost priced in USD?
2) Why most of the loans are taken in USD despite local currencies?

You didn't add that Bitcoin is also priced in USD. The US has the largest economy, and it has been stable for a long time. The USD has also been stable, so many countries are using it as a reserve currency. International trade is less complex when the dollar is involved.

[WillyAp]

1. Trade
A) Most countries bill each other in dollars.
B) Oil, gold, wheat = All priced in USD.
C) Most shipping contracts are in USD too.

2. Finance
A) Most international payments use USD.
B) Loans in USD are cheaper.
C) 9 out of 10 currency trades involve USD.

3. Power 
A) Every country needs USD to buy stuff.
B) The US can sanction others by blocking USD.

4. Will it change?
A) China, Russia, India want to use Yuan/Rupee.
B)  But USD is still king and 60% of the world still uses it.


Now the questions are
1) why are oil, gold and wheat almost priced in USD?
2) Why most of the loans are taken in USD despite local currencies?

The USD is easily available in most countries, the most popular stable coins mimic the USD.
Privat businesses save in USD. Which now is under more pressure due to stable coins. How those will behave in a mayor stock exchange bust, no one know. 

[Hypnotizer]

Now the questions are
1) why are oil, gold and wheat almost priced in USD?

Since the USD has established itself as a globally accepted and recognized currency in trade, pricing goods that are exported/imported in USD actually makes it easier for the trade. The USD acts like a mediator for the trade in that sense and that’s possible because everyone accepts USD and you can easily spend the USD whenever/wherever you want to.

2) Why most of the loans are taken in USD despite local currencies?

AFAIK people don’t really take out loans in USD atleast where I live except if they’re collecting it from someone not in the country or someone that doesn’t use their local currency. People mostly take loans from banks or lending companies and those institutions dispose the loans in Local currency not in USD.

[Cryptomultiplier]

B) Loans in USD are cheaper.

Could you please explain how loans are cheaper in USD?

4. Will it change?
A) China, Russia, India want to use Yuan/Rupee.
B)  But USD is still king and 60% of the world still uses it.

There were proposals for the establishment of a single currency by BRICS nations. But this has not materialised. However, Russia, India and China are using their local currency for trade payments.

Now the questions are
1) why are oil, gold and wheat almost priced in USD?
2) Why most of the loans are taken in USD despite local currencies?

You didn't add that Bitcoin is also priced in USD. The US has the largest economy, and it has been stable for a long time. The USD has also been stable, so many countries are using it as a reserve currency. International trade is less complex when the dollar is involved.

The U.S dollar is always for now going to be among the top leading currencies of the world because of its dominance despite the claims of de-dollarization or despite the rise of multi polar trade blocks.
The U.S dollar even outperforms the economic load of the U.S and that shows you how standard, grounded and structurally sound it is from a grand perspective.

[Mahiyammahi]

The dollar began to be used in the world when the US and Saudi Arabia signed a petrodollar agreement. Every country must import fuel oil. And Saudi Arabia and Qatar are the biggest candidates who sell fuel oil. Now that they have signed an agreement with the USA, they are selling oil in dollars.

 Since then, the whole world has been dealing in dollars. And every country spends a huge amount of money only in the field of energy. That is why it is slowly becoming accepted by everyone. On the other hand, Russian, ruble, Chinese yuan, they are independent, they rarely deal in dollars. Even the countries they are dealing with or helping always accept payments in their own currency.

[Spaceman1000$]

1. Trade
A) Most countries bill each other in dollars.
B) Oil, gold, wheat = All priced in USD.
C) Most shipping contracts are in USD too.

2. Finance
A) Most international payments use USD.
B) Loans in USD are cheaper.
C) 9 out of 10 currency trades involve USD.

3. Power 
A) Every country needs USD to buy stuff.
B) The US can sanction others by blocking USD.

4. Will it change?
A) China, Russia, India want to use Yuan/Rupee.
B)  But USD is still king and 60% of the world still uses it.


Now the questions are
1) why are oil, gold and wheat almost priced in USD?
2) Why most of the loans are taken in USD despite local currencies?

For conversations like this that concerns the dominance of USD over every other currency in the globe, it has been had on several threads, and I'm not surprised that I'm also seeing such question from you OP,  before now the USD has already taken dominance in the global markets, whatever realization people are having now is aftermath. First you should understand that in the world economy, the United States of America has one of the largest economy of the world, Their technological advancement has been there long before now, All of these help in building their influence across the globe, this is why when some persons want to do business, they will always want to refer to an economy or a currency that has influence for them to do their business. So until we start seeing a different world power that has global influence more than America ,That is where you will see probably the USD not having such influence in global trade, but for now, they are literally the World power, and people will always want to relate with the persons that has influence and power.