The Importance of the Dollar

In 1944, everyone came to this agreement to say, Hey, let's peg the value of our currency to the dollar. That means if you have extra reserves and you bought them in dollars, they were stable because they were tied to the gold. The right now, you know what the average is right now on world reserves? 62% of countries reserves are held in US dollars,. And so even though we went off the gold standard, we're the reserve currency. So people see the United States currency as very stable.