Although there is not officially a world currency, for years the dollar It has functioned as the most popular international exchange currency against the euro and the yen, says the International Monetary Fund.
But, if there are 185 currencies around the world, why is the dollar still the “world” currency?
Although today the US dollar is not as relevant as it was during the Bretton Woods system, it has managed to win the role of reserve currency in several countries of the world, this makes it gain ground at the time of currency exchange.
While the dollar American represented the 61.8% of the $ 10.9 billion in foreign exchange reserves in the first quarter of 2019 all over the world, which is followed by the euro that represented only 20.24%.
On the other hand, in 1970 the dollar was 80% of the reserves, so in 50 years, the US currency lost 19 points in the percentage of reserves.
However, the United States dollar remains one of the most widely used currencies internationally.
In fact, $ 580 billion of bills, almost 60% of all dollar cash is kept abroad, compared to 20% that was kept in the 90’s, according to the economist estimates of the Federal Reserve Board.
–
With information from World Economic Forum
– .
