The US dollar the world’s reserve currency

In 1941, the United States of America entered World War 2. That year also marked the end of the financial and economic severe crisis that swept America, the Great Depression. During that time, Americans and British begin to discuss the management of the post-war world, particularly monetary and financial system. Then begin three years of ruthless negotiations: each military support from Washington to London is exchanged against a political concession on the relationship between the pound and the dollar. The hegemony of the dollar starts with war loans, which are in US dollars. Although nothing has been explicitly agreed, the British Treasury could not negotiate.
In early 1942, two monetary reform plans oppose each other: the plan of the American Harry Dexter White, Assistant Secretary of the U.S. Treasury, and the plan of the famous British economist, John Maynard Keynes. White’s monetary plan suggests exchanging all foreign currencies to the dollar while pegging the value of the dollar to a fixed price for gold. Keynes meanwhile suggests to create a supranational central bank beyond both the gold standard that the hegemony of one currency. The international currency, defined by gold, would have been called “bancor”.
Keynes 's plan is obviously not well perceived in the United States while for Keynes, the monetary plan of White gives too much power to the US dollar and thus to United States of America. But Britain did not have the means to resist. Despite the reluctance of the British hostile to negotiations that would dethrone the pound in favor of the dollar, the United States organized a conference in Bretton Woods in July 1944 in the presence of 700 delegates. The 3rd day of the con...
... for the dollar, not even the euro, as a result of the lack of autonomy of the EU economical system. In addition, an American depression would lead to the collapse of the global economy as the United States issue the world’s reserve currency. The establishment of a supranational currency is not ready to enter into force, although China has officially relaunched this idea shortly before the G20 summit in London. The IMF has yet to take the Chinese proposal very seriously, but this would be in a long-term perspective. The United States are determined to stay the world’s reserve currency, China still needs to buy dollars to keep high prices and to maintain its own export capacity .
Over the years the US dollar has proved to be one the more superior currency in the world. The US dollar will always be as strong as it because it is high in demand. Especially when we are trading with other developed economies such as Japan or Europe. So with the relatively good economy, it has helped boost up the US financial markets, it has made the us more attractive to foreign capital. Even though the US dollar has proven its worth some doubt its strength. Some claim the dollar constantly loses its value while others protest that there has been no deflating and that if the US dollar continues at this rate it would become its strongest yet.
Strong and weak dollars are terms generally used to describe the relative value of the U.S. dollar currencies in foreign exchange markets. A strong dollar is a monetary policy that caters to strong foreign exchange rates for the US dollar. As stated in Investopedia, “A strong dollar would normally occur when the US dollar would rise to a level against another currency that is near historically high exchange rates for the other currency relative to the dollar”. A strong dollar basically makes imported goods more affordable for an American consumer and makes US goods more expensive on the international market.

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