Why is the dollar so powerful? | CNBC Explains

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For more than seven decades, the United States dollar has been the world’s reserve currency, with a majority of international transactions using the greenback. CNBC’s Uptin Saiidi explains how it became so strong and explores whether its position could be threatened.
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44 COMMENTS

  2. Everyone who uses a particular currency, is paying a tax, financing the issuer and empowering it to print more without any real asset backing the printed currency

  8. A weak dollar can signal an economic downturn, making me to ponder on what are the best possible ways to hedge against inflation, and I've overheard people say inflation is a money-eater thus worried about my savings around $200k

  15. It's not the currency that will take over the American dollar. It's the Americans that will diminish the value of the American dollar that will take over the dollar.

  21. With markets tumbling, inflation soaring, the Fed imposing large interest-rate hike, while treasury yields are rising rapidly—which means more red ink for portfolios this quarter. How can I profit from the current volatile market, I'm still at a crossroads deciding if to liquidate my $275k bond/stock portfolio

  25. And in every, yes every deal where the dollar is used, both parties as the broad population on the earth, have to pay a "trading fee" and an "inflation fee", right in to the pockets of the US and similars "Oligacny finansial upper stratas".
    Even thoug they dont do a "sip" for the deal.
    So off course we need to get away from this maffia alike "protection" scam siphoning.
    All to get back and to be nearer a traditional market economy.
    And not a maffia alike, corrupt, and corrupting fence like system as the present.

  26. The US "dollars" are in the most cases, nowadays, and probably in the forseeable short future,
    nothing but a "paper tiger".

    So long as you just accept it as a tiger, and fear it as a paper dragon, as the childrens does,
    then the scam works.
    But put a match to it, or as the present situation is, let the US gouvernment set a match stick to it, and it will desintegrate into a little dust cloud.
    Blown away in the wind.

    And as such paperdragons are created, ones on fire, no chans of putting the fire out.
    Except…..

  28. The problem with "Economics" as a philosophy. Is it was deliberately written to obscure what is really going on in "Economics". As a result it is obscured that the US Dollar is backed by oil value not gold value thus the term "Petro-Dollar". But the true usefullness of the "Petro-Dollar" is based on if it is a reliable storage of monetary value.

    But that dollar usefullness was blown skyhigh. When the Biden Administration decided to cut Russia out of using the US Dollar for international trade. Making the US Dollar useless as a storage of monetary value. Which caused every nation holding US Dollars as a banking reserve. To realize the wealth held by holding US Dollars as a currency reserve. Could disappear by a stroke of a Presidental Pen in Washington DC.

    As a result China holding over 4 Trillion US Dollars as a currency reserve. Decided to selloff its dollar reserves and hold only dollars it needed for international trade. And all other nations holding US Dollars as a currency reserve decided to do the same.

    Thus the mad scramble to create a international currency trading system not based on the US Dollar. With each nation in a trading partner group. Trying to make its own national currency as a majority trading currency in that group of trading partners. Thus the breakup of the "Petro-Dollar" as a international currency reserve.

    Of all the really stupid decisions of the Biden Administration.

    Destroying the "Petro-Dollar" as reliable storage of monetary value.

    Is the worst decision a US President could make.

    The American Public had the sweetest deal when the US Dollar was Earth's reserve currency. As Earth's productive capacity was supporting the US Dollar. Not what was happening in Washington DC. So the American Public could live well beyond America's productive capacity.

    But Biden blew that sweet currency deal sky-high in his brain-dead war against Russia. And that is what the Economists are trying to obsure now. With deranged gibberish about the realities of Economics.

  33. Because its phisicle you cantouch it. And didgital money doesnt exist you cant touch and technology fails constantly. And if gives the government a right to spy on people. Its nobodies buisness on how much money you haveor spend. And its easier to get hacked. The dolor use to backed by gold nowits just backed by peopleand their taxes witch isnt for sure money.

  38. The Constitution for the united States says that the government
    may borrow MONEY on the CREDIT of the united States.
    Borrowing money is not the same as borrowing credit. Money
    is gold or silver. Since 1913, the government has borrowed
    absolutely no gold or silver. They borrow bookeeping entries
    that are called "credit." the Constitution does not allow
    borrowing credit on the credit of the united States, only MONEY.
    The entire Federal Reserve Scam is an overt, unconstitutional
    fraud.

  40. The reason why the US Dollar is so powerful is because it enables trade with the US. The US is the world's largest economy, everyone trades with it. The only way to have a currency that can rival it is if an economic and military superpower to rival the US was to emerge.

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