Table of ContentsWhy is the US Dollar used as a global currencyWhy not use the Canadian Dollar or the Australian Dollar or any other currency better than the US Dollar?When the Dollar American is used as currency? How do international people know about the American dollar?History of the American dollarThe American dollar is the official currency of America and its currency code is USD, while its currency symbol is $ (Dunning). According to the global currency rankings, it was found that USD to EUR exchange rate conversion is the most popular exchange rate in the United States so far (Goldberg and Tille). Therefore, the US dollar is divided into smaller units of 100 cents. However, the US dollar can also be made up of Federal Reserve notes in denominations of 1000 mills, which are generally dominant in US currency (Eichengreen and Mehl). Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay Why the US Dollar is Used as a Global Currency The US Dollar is not only used as a global currency, but also as a currency exchange tool (Goldberg and Tillé). Indeed, the US dollar is the most popular and strongest currency, accounting for up to 64% of global foreign exchange reserves (S. Sumner). Additionally, the strength and stability of the US economy boosts the exchange rates of their currency, making the US dollar the reserve currency, and therefore most suitable as a currency exchange tool as well as a global currency (Eichengreen and Mehl). The US dollar has been used as a global currency, as well as to exchange currencies for various historical reasons. For example, the continuing influence of the Bretton Woods Agreement concluded towards the end of World War II contributed significantly to the use of the US dollar in the global foreign exchange market (WG Sumner). After the devastating effects of the World War, the United States economy remained relatively strong and stable compared to other major countries in the world, which facilitated the choice of the US dollar as the global currency in financial markets international. This happened in 1944 at the Bretton Woods Conference in New Hampshire, just before the end of World War II (S. Sumner). Why not use the Canadian dollar, the Australian dollar or any other currency better than the US dollar? The main reason The reason why the Canadian or Australian dollar or any other currency is not used better than the US dollar is due to their relatively less strength and stability compared to the US dollar (Goldberg and Tille). The US dollar is a powerful currency, and its strength being based on the US economy, it is not only used as a reserve currency but also as a financial tool that transforms and therefore strengthens global markets into attractive destinations for foreign capital ( Eichengreen and Mehl). Additionally, the US dollar is the best currency because of the freedom of the US economy and the convertibility of the currency (Eichengreen and Mehl). Unlike other foreign currencies, the US financial system is open and therefore the RMB can be traded on global foreign exchange markets. However, in the case of China for example, the Chinese yuan cannot be used as a reserve currency although it is supported by the world's second largest economy (Goldberg and Tille). Indeed, the financial system of China and many other countries is not open because they are tightly controlled by their).