Why Is the U.S. Dollar So Popular Around the World?

The U.S. dollar is the world’s most popular currency, and the U.S. economy greatly benefits from that fact. The dollars’ role as the world’s favorite currency began in 1944 at the Bretton Woods conference, which took place after World War II with the purpose of creating a strong international monetary system and promote financial stability. Since then the trajectory of the U.S. dollar as a global currency has changed many times, from fixed exchange rates to abandoning the gold standard in 1977. Due to its open financial markets and its network effects, the international demand for dollars has increased, benefitting the U.S. in three important ways: it makes borrowing cheaper, it increases Americans’ purchasing power, and it gives the country more diplomatic advantage. Sign up for the CFR Education Newsletter to receive global affairs resources like this straight to your inbox: https://link.cfr.org/join/66n/hp-cfr-... Subscribe to our channel for more videos that cover the issues, trends, and concepts you need to know to navigate our complicated world: https://link.cfr.org/join/66n/hp-cfr-education-youtube CFR Education, from the Council on Foreign Relations, aims to close the global literacy gap in our country by providing accessible, accurate, and authoritative resources that build the knowledge, skills, and perspective high school and higher education students need to understand and engage with today’s most pressing global issues. Visit our website: https://education.cfr.org/ Follow us on social media: Facebook: https://www.facebook.com/CFR_Education Twitter: https://twitter.com/CFR_Education