United States dollar

For more than sixty years the United States dollar has been the central reserve currency for the world. A reserve currency, also referred to as an anchor currency, is a currency that is held in significant quantities by governments and institutions as part of their foreign exchange reserves (Carbaugh, 2011). As the world’s reserve currency, the U.S. dollar is used throughout the world as a medium of exchange and is used as the global currency for products traded within the global market. In recent

Future of the U.S. Dollar Today, the world economy, after witnessing the greatest hit in 70 years, is wondering what life will look like after the storm has settled. It is grappling with the fundamentals of unemployment, increasing inflation, current account deficits, negative growth, and zero interest rates along with it, depreciating the value of money. In the midst of all this the future of the U.S. dollar is uncertain. Will the dollar maintain its reserve currency status even after its depreciation

of foreign currency whereas the direct method quotes foreign currency in units of local currency (SAP Solutions, 2015). Obtaining exchange rates to compare the United States Dollar (USD) to other currencies is best completed using the direct exchange rate to provide consistent data and reporting. Strength of the United States Dollar In comparing the exchange rates of the USD to foreign currencies, four additional countries were used to complete a two year comparison: Japanese Yen (YEN), European

For example, one United States dollar buys 104.08 units of Japanese yen. The rate directly correspond to the base currency. If the rate increases to 110 units of Japanese yen; therefore, it appreciates. Overall, the increase or decrease of a rate will always corresponds to the

Carbaugh (2011) asks, "Can the United States Continue to Run Current Account Deficits Indefinitely?" (p. 361). Ultimately in the long term the answer is no, but the question could be rephrased to ask: (1) Does the United States' unique position in the world economy allow the country to safely run persistent external deficits? and (2) can persistent U.S. deficits in the current and payments accounts be adjusted without bringing about economic recession or crisis? Japan, China, and Middle Eastern

past 13 years, announced that the Renminbi would switch exchange rate regimes and would begin to follow a more flexible regime that was tied to a basket of different currencies. Prior to this new change, the Chinese yuan was strictly pegged to the US dollar, which helped them thrive economically in the global market. Less than a decade before the exchange rate regime was changed, the Asian financial crisis occurred and many East Asian countries were impacted. Compared to its neighboring countries, China

The objective of this paper is to give a clearer picture to how the U.S dollar became the world 's most dominant reserve currency . Several countries use it as their official currency, and many others use it as the de facto currency . Moreover, American dollar is the primary reserve currency, which is used as the standard unit in international market for commodities such as gold and petroleum. However, the dollar has been declining over the last three decades; in fact it has lost almost half its

1. Country and economy overview of the United Kingdom (macro level) 1) Overview of the economy of the United Kingdom. The economy of United Kingdom has long been one of the most advanced economies in the world. Having been through the Industrial Revolution in 1900s, it has found its footing and established itself as a global economic powerhouse. Measured by purchasing power parity, the UK is currently ranked as the fifth largest economy in the world, contributing to 4% of the world GDP. It has a

nations which included France, Germany, the United States, Japan, and the United Kingdom agreed to operate exchange rates by depreciating US dollar relative to the Japanese yen and the German Deutsche mark. The objective of the Plaza Accord was to correct trade imbalances between the U.S. and Germany and the U.S. and Japan. Also to help the U.S. improve its huge trade deficit and to stimulate its economy to climb out of the 1980’s long recession. The United States experienced 3% GDP growth during 1983

dollars and a demand for a foreign currency. C) Demand for U.S. dollars and a supply of a foreign currency. D) Demand for U.S. dollars and a demand for a foreign currency. Answer: B Type: Basic Understanding Page: 437 13. Changes in the value of the euro affect the economies of: A) Only those countries