United State Dollar’s global position is intact amid pandemic
The United State Dollar is a currency that is officially recognized by the United States of America and its territories, but it is the currency that is used by some other countries also. Here there is an important point to think that, how does the dollar became so powerful?
The Dollar is circulating around the world though it is an intellectual property of the country America, it is calculated that 1.8 trillion plus USD is roaming around the world. It is conjectured that half of the printed bills or notes of fifty dollars and two third of the hundred dollar bills that are printed in the United States are traveling in the name of business outside the country.
USD bill earned the trust of the giant business, financial and Government bodies across the globe, even the pandemic was not able to push back the position of the USD.
USD hails from the world’s most giant economy, and its stability in terms of politics and economy is has no loop holes. Even the USD is also strong as its country of origin; the value of USD is almost intact and never tumbles like other developed countries currency falls. Do free online trade in USD with the help of ELP Market's Day Trading Software in UAE.
How USD held the ground during Pandemic?
The astute measures were taken by the Federal Reserve Bank, which is the America’s Central bank, the decision of making the swap lines with the other world big banks like Swiss National Bank, Bank of Canada, Bank of England and Bank of Japan served the surge globally and the currency trading UAE as well . You are welcome to embark a journey of free online trade UAE on ELP Markets. The day trading software UAE is the specialty of ELP Markets website.
The Gold Link
The USD was linked with the gold after World War 1 and the values of USD was equivalent to the certain amount of gold, and this standard was followed globally, this turned into a boon in World War 2 when United States of America started selling its arms and other supplies to its allies across the globe and in return USA demanded gold, this supplied almost seventy percent of the gold found globally to the country. This made other nation’s economy weak and drastically resulted into the contraction of growth of the other nations.
Reforms at Breton Woods
In the year 1944 in New Hampshire, the forty four countries from across the globe huddled to discuss the currency and its value, the agreement was done there that the value of paper money is in terms of gold, and since United States was already had lion’s share of the world’s gold reserve, so the world currencies will be linked to the USD which is linked to the gold in return.
Amid lot of uncertainty the Nixon Presidency void the link of dollar the gold in the year of 1971, this meant that currency exchange rate was no longer fixed to the gold but market value instead this served boom in currency trading UAE also. Despite all the odds in the world economy USD remained the global currency due to its flawless banking system.