The dollar, which is one of the most used currencies in the world, has about 60% use in international trade. Therefore dollar is one of the strongest currencies today. That makes America most independent country in the world .
Many currencies around the world are determined by dollars ,Gold, oil and many other assets are traded on dollars.
Why is dollar so important in the world market?
The real reason why the dollar has a prestige in the world trade is the Bretton woods monetary system, signed in 1944.
After the World War II, 44 allies gathered under US leadership , they have only taken the decision to index US dollars to gold and other currencies to gold over the dollar. This decision was also the beginning of the period when the dollar was under the hegemony of the world.Because it was easy to keep their money at dollar.
According to the accord ,the United States will only be able to make as much money as gold.But America did not fit into this deal and started to export money to the world by printing extra money to close the current deficit. United States has developed as economic and political after that the dollar became a reliable port for other countries in the following years. Thus, the Gross National Product (GNP) provision has been published for all countries that accept it as the US dollar. Today, the exchange rate of 7 trillion dollars is offset by only 4 trillion dollars worth of gold.