Topic: The value of currency in country's economy (Read 305 times)

All of these variables have contributed to the US dollar's position as the world's primary stable currency. This implies that many foreign countries maintain US dollars as reserves, which contributes to the dollar's strength. The US dollar is also widely utilized in worldwide trade and finance, serving as the currency for the majority of global transactions. The overwhelming influence of the US dollar may have both beneficial and bad consequences for the global economy. On the one hand, it ensures steadiness and a single currency for trade across borders. On the other hand, it may cause inequalities in investment and commerce, as well as currency crises in other nations, and it's captivating to contemplate how the U.S. dollar supremacy could be influenced by the rise of other currencies such as euro etc.

Even the floating economy is control by the US dollar and also the fixed economy of the state. And why the floating economy is because the marketers increase their goods price whenever the dollar exchange rate has increased in the international market, those imported goods would also increase their goods prices in the market and that would extend hand to the local market. I have forgotten why the US currency is used as the international currency in the international market.

The international market is dollarcentric and any other currency is subjected to it. And because of that the value of other currencies are devalued.

America as a country has the largest gold reserve in the world if I am correct and that is a sure backing to the dollar, hence why it is strong and dominant in the world.
If ac country wants it's currency to have much value, it would aim to ensure that it has enough in its reserve so that when the demand for the currency rises, it would be able to supply accordingly.

The U.s has done a lot of marketing right from time and that's why it's easy to have an influence in many countries despite the kind of currency they use.

In terms of innovation, I agree that America has a place in providing opportunities for technological innovation and also a large market as well as knowing positive and negative sentiment by following updates on global market conditions. Yes, it is an important factor in maintaining a country's superiority where the combination of all these factors helps build a strong foundation for growth and sustainability of course.

I also think that their unity adds to it. If for instance the US states ever had internal issues and for any reason they choose to divide the country, they’ll lose their ground. I know any country would lose their ground in such case but it seems US watches other countries have conflicts but never does. I am not sure if I’m explaining this well but at least it gives a picture. And yes, like you said, their technological innovation, large market, etc adds to it too.

I live in a country with a growing economy but at a fairly fast pace. I also see the economic influence from big countries like USA, China,... But it must be said that the policies we are applying are approachable and quite effective for national economic development. The way I perceive the USD is the strongest currency in the world is due to many factors, including the strength of the US economy, high interest rates, high demand for USD, politics.

The country I live in has been depreciating against the USD for many years, but has been on an upward trend recently. My feeling about the national economy is truly absolute confidence, because if we look back about 20 years ago, we have achieved great achievements, escaped poverty and are improving everything more positive.

Currency determination is a very important or urgent matter for the economy of any country. In the country's economy, the value of a currency is determined against the value of goods. That is, if the price of goods increases, the value of money decreases, similarly, if the price of goods decreases, the value of money increases. Again, the value of a country's currency gives more priority to the quantity theory of money. For example, the value of a currency is determined by all the money in circulation in a country, but in this case, there must be a balance between the overall demand and the total supply of the country and there should be a full employment system in the country. Again the currency value of the country is determined by the gold reserves of the country which is resolved by the central bank. Currently, the currency value is determined based on the gross domestic product of a country.

Why are we always submissive to the dollar? The U.S. economy is strong, but let's go deeper. Not only high interest rates or various sectors. Military power and political influence? These are key to the dollar's strength

Our currency's tango with the dollar is about sovereignty and place in the world system, not just economics. Definitely a tough battle. We're facing a titan, but we're not out. Though not the strongest, our money is nimble and robust. It captures our economic goals, problems, and potential. Compare it to the dollar and remember that it's about values

They have huge oil reserves that make people think their economy are strong, but don't forget they can run out of oil. Don't forget with Nauru, they once ever become one of rich country and now they're become poor after they run out resources.

Their currency isn't that strong.



Currently yes, but we don't know about the future.

Both Russia and China are starting to abandon USD, so this would give an impact after few years.

The global economy is dollarised which has made the demand for the currency high. Most nations have to convert their local currency to the dollar for them to engage in international trade and this has led to the strength of the dollar. The USD will keep being the most popular currency for many decades until another powerful currency is floated by a single or group of industrialized nations.

The US economy is highly industrialized which has attracted more revenue to the government. The private sector driven economy manufactures diverse products and offers uncommon services that creates wealth for the nations. Most Fortune 500 companies are located in the US. We cannot also push aside the military power of the nation. The country has been able to manipulate the global economy through its military might.

We cannot also dispute the fact that the US has some of the best economic brains. The country is blessed with some of the best higher institutions that produce many great economists who plan the US economy. The country attracts many brilliant people from different parts of the world who also contribute to the growth of the US economy.
 My country has lost almost 90% of its value when compared with the US dollar. The economy of my country is highly dollarized because our local currency is highly volatile. Our trading partners will prefer to trade with dollars because they wouldn't want to accept a currency that is losing value every day. This has led to the scarcity of dollars since there is overdependence on it for imports.

Printing resulted in a decline in USD value as inflation kept rising but this is not just affecting the US economy but the rest of the world as the inflation in poorer countries is worse. If they keep this QE for years, it won't be long it would take more than $20 per gallon. The US government prints money while my country also prints our money, It is where it is today that a liter of gasoline is a pain in my ass.

The US economy is still stronger since they trade in every corner of the world, and they have lots of investment in China too.

From time to time my country currency exchange rate against the dollar continues to weaken, and once reached its lowest level when we suffered from the monetary crisis in 1998. Until now, even though developments have been much better, in fact the exchange rate against the dollar is still very weak. One reason is that the amount of our national debt is very large, and it will probably be very difficult to pay off in the next 10 or 20 years. I think inflation also plays a role as one of the reasons why our country exchange rate is so low against the dollar, then the political instability of a country is also a benchmark. Currently we have just held elections for the next presidential election, where I hope that the elected President can increase economic growth and reduce inflation.

I would say it IS number one currency in the world when you think about how many nations you can go to and that has to be the most important part of it all. I understand that we can see Chinese currency getting stronger and stronger, but put some Chinese currency in your left pocket and put some dollars on right pocket and go around the world, visit 100 nations, go to 1 shop in each of them, and ask them would they prefer to accept dollar or Chinese currency.

If 90+ of them doesn't say dollar, then I would be shocked. At least 90%+ of them will say USD and there is a possibility that you may even get all 100% if you do not visit China or nations surrounding it. USD is still number one accepted currency all around the world.

If I am not wrong USD is not even in the list of top 3 or top 5 strongest Fiat currency in the world, everything is from the middle eastern countries then why USD still used as reserves not the Dirham or Dinar?

It's about the acceptability and of course political reasons but USD is losing its value a lot in the past 3 or 4 years compared to the last 20 years which is a big red flag and government should stop printing paper money if they want to stronger their local currency value.

That's the currency in our beloved country, it's really very behind the numbers of its own currency, compared to the U.S currency, our currency is far behind the numbers, in our country now 100,000 has no meaning anymore when we shop at the market, the current economy very bad, very impactful on the lower middle class, poor livelihoods with a currency that is getting weaker compared to other developed countries, people are actually obedient to taxes, but when they want to pay taxes it is made difficult by certain individuals, so people become lazy to deal with it. On that side, it is complicated and complicated, so when people are no longer aware of taxes, don't blame them, even though annual taxes are very high in our country, but the people are not prosperous as usual, the prosperous ones are state officials who are wallowing in wealth.

the us dollar has been the strongest currency globally for several decades because it is supported by the strength of the american economy and it is widely used by countries in the world in their trade. not only that, countries in the world also buy and store dollars to maintain their economic stability and for trade between other countries. because the countries in the world need the us dollar so much, it makes the dollar one of the most important currencies in the world and that makes it strong.

indeed, there is a lot of controversy surrounding the adoption of the us dollar in trade throughout the world, there is even a dedollarization movement which replaces the us dollar in trade between countries because it is considered unfair to other countries' currencies. but this does not make the us dollar decrease in value, in fact it is quite stable withstanding global geo-political and economic turmoil.

we don't know how long the us dollar will be the strongest currency, but for now we have to accept the fact that the us dollar is the strongest currency in the world.

If you're talking about a world dominant currency, it has to be none other than the US dollar, although I hear that it's not the number one currency in the world, but in practical it's the currency that's acceptable for international trades. I believe that the reason is because the US has a very strong economy, in the areas of technological advancements, military strength, the best sports and entertainment sector, no other nations beats them in innovations. Every other country depends on the dollar to assess the the strength of their currency, because the US economy is considered stable.

The exchange rate of my country's local currency to the dollar is alarming, the naira keeps devaluing everyday and we see this clearly because when compered to the dollar which is stable, we find out that our government needs to be proactive and make the economy better.

Is the American economy "the strongest in the world" right now? I really don't know. The US economy has been the strongest and most competitive economy in the world during the past 80 years, but that competitive edge is slowly declining. The modern day US economy has been artificially pumped by trillions of USD printed by the Federal Reserve. Technological superiority is one of the biggest factors you didn't mention, but I think that USA is slowly losing it's technological dominance, while China starts producing cheap and advanced high tech products and services. China is "the global factory", while USA has a service-based economy with giant financial sector and decent IT sector.
My country has a currency that is pegged to the euro, so my national currency isn't freely floating on the international fiat currency markets.

Permit me to correct you, the USD is not the strongest currency in the world, the Kuwaiti Dinar is, and according to many sources online, including that of "Bankbazaar" which other sources also agreed with, the USD is the 10th strongest currency in the world. The exchange rate is what we use to know the strength of a currency, and perhaps you are using the relevance and dominance of the USD to judge in this regard, but it doesn't work that way.

Yes, the USD penetrates the world deeper than any other currency and there is no asset in the world that is not paired with it in the financial market for trading transparency and fairness. This also answers your questions of "why," as the relevance/dominance in the financial market means the relevance/dominance in the world market.

Let me be as summarily as possible here. As a person who is deeply rooted in the things of the economy myself, I've always known that many things are responsible for strong America's economy, but can be encapsulated into three major factors, and they are;

1. Natural resources: The US is blessed with a lot of natural resources, I mean with a very long list of them. Is it Crude oil, Gold, Coal, Lithium, Iron, Uranium, Copper and a whole lot of them? The US has it and has helped to drive the economy to the roof, even as they manage their resources very well.

2. Human resources: It's no news that the US is good with creativity, distribution and management. Anything that has to do with human function and effectiveness, the country is top-notch and this has helped the economy so well.
 
3. Politics: Over the years, the US has built relations all over the world and has used this to dominate a lot of major markets. Imagine, in the UN and other important global organisations, the US is a leader and a major donor for the stability of the world. This, and many other philanthropic duties, personal relationships with countries and aid disbursements have helped the country to gain more dominance and penetrate a lot of the major markets than any other countries of the world.

Don't even go there, my country's currency compared to the USD is incomparable as my local currency is second to what I term "useless." You can imagine the worth of $1 in 2010 to be around 100 of my local currency, but as I write now, the average is 1,700. What a shame!

The USD has been the most stable currency in my opinion. It though has its issues but it has always been reliable, which is why it is possible for it to maintain the world's reserve currency since the duty was shifted to it from Gold.

~ Because America was the winner of World War 2, its currency became the world's main currency. America also has a strong economic policy and uses many weapons to its advantage. If America lost World War II, the world economic condition would not be like it is now

~ What assessment do you mean? I don't like it, it makes my country's debt continue to increase because the American currency always strengthens consistently. The conditions are not good for my country