Ten reasons why American dollars is an important currency for the world economy

The American dollar leaves his mark on every corner of the global economy. It is the currency in which early vital materials are purchased and sold and is the safe haven that investors return to in difficult times. Why?Got it.

The dollar is now at the highest level of the last 20 years against other global waves, partly thanks to expectations that the United States Federal Reserve (Fed) will increase interest rates faster than most others.

These are ten reasons why the US dollar is important currency.

Americans abroad

The mighty dollar is excellent if you're an American tourist. Hotels, lunches, or stylist bags are cheaper than London, France's revival, or the Cancúnce in Mexico.

It is unnecessary to say that the opposite applies to travelers who travel to the United States unless they bought a ticket to Disneyland or reserved entertainment in Las Vegas. So it's gonna cost more.

Money Party

This is an additional bonus for Americans travelling to any of the 19 member states of the European Union (BE) that use the euro as their currency, but it is a little comforting for Europeans travelling to the US.

“Made in America”

For buyers around the world looking for American brands, the powerful dollar means that they can pay more dearly unless the distributors have tried to ease the blow from raising the currency value.

In recent days, American companies such as Mattel Inc, the producer of Barbie dolls and cars Hot Wheel, have said they are already seeing the effects of raising the dollar even though customers are willing to pay more.

For the giant Proctor & Gamble, the producer of daily necessities, such as Ariel diapers or detectors, raising the dollar is always reflected in their sales.

Problems on the horizon

For the Argentinians, raising the dollar in proportion to exasperation means doubling local prices within the year and deepening the economic crisis. Governments and businesses of many of the new economies are financed by the release of shares in US dollars. The amount they now owe, has increased value if measured by local currency. The use of the market for more loans has also become more expensive, as rates have been raised in the US.

First Raw Subject

States like Turkey and Egypt, which import many raw materials, have been hit twice as much. Most goods, ranging from oil to wheat, associate the price with the dollar, which means they pay more with local currency for each barel or barrel, which are measures for oil, respectively. This is happening at a time when the prices of many of these materials are already at a high level many years due to war in Ukraine, extreme climate conditions, and after the shock of the pandemic caused by the Coronavirus.

Outside Help for the Home

The empowering of the dollar is good news for people in poor countries like Mexico or Guatemala, who depend on remittances from relatives working in the United States. The effects of the COVID-19 pandemic hit these remittances in 2020, but a steady recovery has been recorded since then.

Inflation

Even for rich countries, such as Grmania, raising the dollar means that economic difficulties can arise because it strengthens inflation that is also on the rise through expensive import. Local central banks in general have responded to increased interest rates, which means that borrowing is harder and slower economic growth.

Russian ruble Gathering

Russian ruble is the only currency in the world that is in the lead against the dollar this year, which is an unexpected result for a country under international sanctions due to the invasion of Ukraine.

But this power of the ruble, which is a result of controlling the exchange rate, has little meaning for an ordinary Russian. Moscow can raise tens of billions of dollars each month from energy sales in the West, but Russian families still cannot attract their savings to foreign currency. Many Western brands, from Addis to H&M and Ikea, have banned sales in Russia since the beginning of the war in February.

Bitcoin

Announced as the final protection against inflation, the world's largest cryptovalout failed to meet expectations, and the decline rate is more than half its value, despite unprecedented consumer prices in most parts of the world.

A large number of individual investors who invested in cryptovaluta during market-powering last year have now given up digital currency so that their savings can be transferred to American currency, which is considered by them as safer and has now begun bringing interest rates. /Reuters í Translates: Radio Free Europe/